Discuss Market Comments 10/14

Break of rising wedge- Stocks rallied sharply yesterday and despite finishing well off the highs, the Dow was still up 76-points on the day. Strong earnings from Intel and JP Morgan were said to be the catalysts, but interestingly enough, both of those stocks closed the day in negative territory.

Market Commentary for 10/14/10

Current Daily Market Commentary

 

[Guest]

Is the strength of this market currently amazing? I was surprised that stocks drifted lower with such a weak dollar but once it did I thought the downside was inevitable. Then dip buyers stepped in help the indices make it most of the way back and settle right at the top of that rising wedge. How important will it be to see tomorrow if we finish the week with a break out or a breakdown? Should tomorrow's finish lead us to know whether more upside is coming or if we should take profits?

 

[tsptalk]

I am watching that rising wedge. If the S&P can hold above that breakout, I don't see any reason to sell. Even sideways at this point would be OK. It is rolling over and breaking support that I would worry about.

Good luck!

 

[Bullitt]

VIX says the breakout of the wedge was a fakeout and I don't believe this market is as strong as the crowd thinks. Two days in a row now the high was made just around the inflated futures open. Nothing but short covering as NYSE short interest is very elevated. INTC makes a blowout quarter, gaps up huge and the stock goes bust- down 1.75 in two days. AMD does a bad quarter and goes up in the AH, but real trading hours lurk around the corner.

The short term is nothing but a coin flip, but I predict we gap (up) and crap tomorrow (10/15).

 

[tsptalk]

The elections just throws a wrench into the logic of this rally. In last weekend's wrap up blog I showed the stats of post mid-term elections results, which were extremely positive historically.