After the Close

After a weak opening, the market rallied through the day, getting slightly above the previous close. But got hit towards the end of trading, closing down 46 at 1180.58.  Oil, after being off a little for most of the day, also got hit toward the close, ending down over $2.00 at $83..21  Gold closed up $20.70 at $1386.70 and the Dollar closed higher again at 81.30, while the Euro closed down hard, under 130 at 129.80.  Does anyone remember when the Euro was at 142 and GS was talking about the Euro going to 155?  I think they still are.

Our Momentum Change indicator generated a Sell signal for the Euro 11/8 at 139.80 and a Buy signal in the Dollar 11/05 at 76.25

Our Momentum Change indicator remains on a Sell.  Very short term traders who might have gotten long yesterday, looking for scalp a few SPX points,  should maintain their stop at 1175.50.  We expect the fireworks on the down side to commence next week, but be aware that other indicators are warning of an impending decline that could start at any time. Only day traders, with very short term horizons should be long at this point.. the majority of trading money should be short, respecting our Sell signal confirmation 11/12 at SPX 1202 should maintain short and short equivalent positions.



Good Luck Trading.

Bill

Tuesday Mid-Day

The Market opened lower on continued fears re: the UCU and the viability of the Euro.  The dollar is slightly higer, the Euro is down, trading briefly under 130.  Oil is up 80 cents and Gold is up $21.  For those paying attention, the recent relationship between Gold and the Dollar has broken down, but Dollar strength continues to signal weak a Equities market. It should be noted that our propriety Momentum Change indicator generated a Buy signal for the Dollar on 11/05 at 76.25.  The Dollar is currently trading 81.03

The press is full of comment this morning about weakness in Copper, and how the Copper index has been a leading indicator of Equity Market behavior.  Our Momentum Change indicators generated a Sell signal in Copper 11/16 at 390.  Copper is trading today at 381.

Our Momentum Change indicator for the Equities market continues in the Sell mode. Several additional technical indicators are flashing warnings of impending decline in the near term.  We suspect that decline will manifest the week of 12/06 and it should be exciting.  Mean time, the market is noodling around between 1180 and 1203 on the SPX.  It may be possible to catch a small bounce in the SPX this week, however, anyone playing that day trade game needs to keep stops very close.

Good Luck Trading!


Bill

Very short term opportunity

with the SPX currently at 1176.54, and a series of daily failed auctions, it appears the market is setting up a rally that should then set up the selling wave we expected next week.  Much of our work seems to be anticipating a sell-off that could take the SPX down to the 1100 level. 

While it looks like the SPX is setting up a rally, our momentum indicators are still on a sell signal...We do not have a new Buy signal. We do not expect the rally to carry above 1202.  If you enter the long side for a very short term bounce, use a very tight stop at 1175.5

This idea is just for very short term traders.. looking to scalp 20 or 30 SPX points.

Bill