Comments on: MARKET WRAP – RUNNING SCARED BEFORE HALLOWEEN

By: Tom

Tom — Sun, 01 Nov 2009 14:32:06 +0000

I’m guessing that with the earnings season winding down and the posting of a positive GDP, investor focus and expectations have changed. Looks like we got the bounce from earnings and now investors are looking at economic news to confirm that the recovery is on track. Effectively, the bar has been raised and “less bad” (except declining layoffs) is no longer good enough (the posting of a positive GDP is the trigger for the change in expectations).

Next week some major monthly economic statistics come out. The safest thing to do was to take profits on Friday and not wait to see whether the reports will confirm that the expansion is “expanding”.

By: JACK

JACK — Fri, 30 Oct 2009 21:44:58 +0000

The bears are now back in control short term. Over the next couple weeks,I think the market keeps fighting back and makes repeated attempts to break to the upside. Expect more one-hit-wonder days like yesterday with a couple big up days off oversold, increasingly negative sentiment. I think bears are emboldened and will beat down bull advances. Still think this mini correction sets us up nicely for a last hurrah rally towards the end of the year that takes us near or past recent highs. The real down leg won’t start until we get into 2010 and i think it will be ugly.

By: JeffT

JeffT — Fri, 30 Oct 2009 20:53:41 +0000

Yep – ominous signs – fitting for Halloween.

SPY, DIA, QQQQ all got big red candles on high volume. Best to wait and see.

By: TPC

TPC — Fri, 30 Oct 2009 20:46:46 +0000

There was a lot going on today. The weak consumer data in the morning, the McTeer comments, the Ross and Icahn comments, the Mayo comments on Citi.

Plus there was the whole agreement that yesterday’s rally on the GDP was just overdone.

By: Henry

Henry — Fri, 30 Oct 2009 20:43:53 +0000

AFter yesterday jump, i’d expect some pull back, not a 100 tons wrecking ball. And not sure what is the exact catalyst for today horrendous hit.
According to briefing
“There wasn’t any immediate cause for this session’s decline, though some market watchers point out that stocks have had an increasingly difficult time of climbing higher since making their strong runs in recent months. Others have pointed out that there may be some month-end portfolio rebalancing and window dressing accounting for the recent whipsaw trade”

This part from bloomberg which is amusing. CIT, the last couple times of almost bankrupt didn’t do anything to the market. Now suddenly it does??

“By Rita Nazareth

Oct. 30 (Bloomberg) — U.S. stocks tumbled, ending a seven- month streak of gains for the Standard & Poor’s 500 Index, as declines in consumer confidence and spending and the threat of a CIT Group Inc. bankruptcy raised concern over the durability of the economic recovery. The dollar and Treasuries gained, while commodities retreated. “

By: TPC

TPC — Fri, 30 Oct 2009 20:22:59 +0000

I am still the lion in the grass. I can wait here for months before I pounce. Wait and see mode for me….

By: JeffT

JeffT — Fri, 30 Oct 2009 20:19:22 +0000

Thinking that the market would pull back a bit before surging up the mountain again – I tried a small long position. That didn’t work out so well – good thing tight stops were play. Holy cow.

Now we have a nice white candle sandwich on the daily SPX charts and what looks like a red doji on the monthly.