Today on the Marketbeat - What goes up, must go down, then down some more...

Market #'s @ Close:

DOW: -350 to 10,482

S&P: -46 to 1,114

NASDAQ: -92 1,977

RUS2K: -32 to 637

VIX: +6.28 to 46.08

TSX/S&P: -760 10,950

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Internals:

Core Sector List: 16/0 Bears

NYSE

BREATH: 8/1 Negative

A/D LINE: -2150 Ticks

TRIN: 1.53

NASDAQ

BREATH: 21/1 Negative

A/D LINE: -1800 Ticks

TRIN: 5.02

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Chart of Internals + Es & YM

(Click to enlarge)

Today on the Marketbeat: What goes up must come down, then up then down more...

It seems like anytime there is any strength on the market, its met with vicious selling. This week has been no less the same thing. After the big wash out on Monday, we had a solid bounce off the lows, followed by a chop fest yesterday - insert overnight news of the short selling ban being pushed until October 17th, along with the Senate giving the ok on the Bailout Package and were right where we were on Monday night. Although we didn't retest and peg the lows from Monday, today was still another washout day with the Dow down 350 pts. This brings me to ask this - Will we ever go back to normal market fluctuations ....When I started, I remember seeing 70 pt Dow move days and thinking those are nice....

Under the hood, the internals were once again a picture perfect visual reminder to stay bearish. The Breaths both came in with strong bearish numbers of 8 to 1 on the NYSE and a whopping 21 to 1 on the NASDAQ. While the A/D line was down big again today - NYSE= -2150 ticks and the NASDAQ= -1800 ticks. 

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Unusual Options:

JOSB (Nov 20 puts, Oct 35 puts)

Stocks in scope:

PDS (down 15%, new multi-year low) / CLX (sticking up during messy market)

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Important Disclaimer! This website is for entertainment purposes only. Equities, Futures, Options, and Currency Trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell equities, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Absolutely consult your Registered Financial Adviser and your Risk Trading Plan before ever investing or trading any financial instrument!

IN THE NEWS

In The New last night:

SEC extends short-sale ban

Commission continues to bar bets against 800 financial companies until bailout pact enactment or Oct. 17.

http://money.cnn.com/2008/10/01/markets/sec_shortselling.ap/index.htm

Senate passes bailout

Plan to buy $700B in troubled assets wins OK. Backers hope add-ons will yield more yes-votes in House.

http://money.cnn.com/2008/10/01/news/economy/senate_rescuebill2/index.htm

Today on the Marketbeat - The Calm before the Storm ?

Market #'s @ Close:

DOW:   -19.59 to 10,831.07

S&P:    -3.68 to 1,161.06

NASDAQ: -12.93 to 2,069.40

RUS2K:  -8 to 672

TSX/S&P:-38 to 11,714

VIX:    +0.42 to 39.81

Internals:

NYSE

BREATH: 1.1/1 Neg

TRIN: 1.01

A/D LINE: -

NASDAQ

BREATH: 3/1 Neg

TRIN: 1.73

A/D LINE: -

Core Sector List: 10/6 to the Bears

Chart of /ES Futures (Click to enlarge):

The Calm before the storm ?

Today was a fairly quiet market day. The markets gaped down and continued that move until 11am when it hit S1, and then switched gears and filled the gap. That was probably the best setup play for the day (gap fill). After that it chopped into the close, most likely due to no one wanting to get in before the Congress vote tonight. 

Under the hood the internals were essentially slightly bearish all day long, the breaths never went green and the TICK essentially traded in the noise zone all day. The core sector list capped this chop day with a reading of 10/6 at the close (however it was 9/7 most of the day). 

News for Day: 

-W.Buffet buys a $3Billion dollar stake in General Electric (Ticker symbol: GE) at the set price of $22.50. Stock traded around $25 intra-day but closed around 24.

-Washington Mutual (WM) has changed its ticker to WAMUQ / Lehman Bros = LEHMQ

Unusual Options Activity:

BNI (nov puts) / UNP (Oct puts) / KEY / FDO / MOS / LVLT / RSG / CSX (oct 45 puts)

Stocks in Scope: GLD / 

Food 4 Thought:

- Setting up order templates on TOS - 

When trading, the less you have to think about your setups the more time you can spend watching the numbers. Also having a setup that is made before you even enter the trade can help eliminate emotions when trading. A good way to do this is find a certain setup that you use, for example we will use an entry with 1 Target and 1 stop. 

ex:  Going long the YM @ 10900 

Step 1) click the the ASK price, and place it to your trigger = 10900

Step 2) under the order click advanced order, then 1st Trig OCO

Step 3) Place your stop, and then your target to the upside. 

Now this once filled will have your target and stop which are triggered by the entry order. Also if your target is hit, the stop is canceled so you don't have to worry bout being stopped back into a play. 

Now you can save this setup by clicking the little disk next to the delete button and give it a name. This will put this order setup so that all you need to do is right click on the bid or ask and put in the order. Now all you have to do is set the parameters and you have an order that saves you time, and emotional trauma

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Important Disclaimer! This website is for entertainment purposes only. Equities, Futures, Options, and Currency Trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell equities, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Absolutely consult your Registered Financial Adviser and your Risk Trading Plan before ever investing or trading any financial instrument!

Today on the Marketbeat - Rally on Hope

Market #'s @ Close:

DOW: +484 to 10,850

S&P: +60 to 1,166

NASDAQ: +98 to 2,092

RUS2K: +22 to 679

TSX/S&P: +600 to 11,884

Vix: -7.30 to 39.39

Internals:

Core Sector List: 16/0 Bulls, many up 3-4% today

NYSE

BREATHE: 7.7/1

TRIN: -

A/D Line: +1937

NASDAQ

BREATHE: 5.5/1

TRIN: -

A/D Line: +920

Rally on Hope:

Chart of /ES (S&P Futures)

After a blow out day like yesterday (see blog entry - Dow down 777), we began the day with a grain of salt, and some hope that the market would at least find a short term floor. Those hopes were answered today as the trading gods gave back some of the huge losses the markets took yesterday in the woodshed. the broad market pushed higher almost all day today taking a decent sized chunk out of the big fall we took yesterday. The S&P (/es) took off early and although chopped around till after lunch pushed higher to the last minute of the day, the Dow followed suit pretty closely. News hit the wire after lunch of law makers wanting the SEC to halt market volatility as another measure to protect the markets....Personally I think the people outside the market should be focusing their day jobs. This piece of news did not really do much to halt the rally. The only piece of today that casts any shadow on the nice move we saw, is that there is a lot of hope being pushed for the Rescue Bill to be signed sealed and delivered by weeks end....and that could of been cause for the rally. However, we are traders and traders trade what they see, meaning you don't need to know exactly why a move happens, just know that it happens and you react to it accordingly. In a market environment like this, there is no room for marriage to opinions. 

Chart of Internals:

Under the hood it was essentially the exact opposite of yesterday, just less intense. Breath readings came in at 7.7 to 1 on the NYSE and 5.5 to 1 on the NASDAQ. Trin readings haven't been very reliable lately, but the TICK made up for it as it spent most of the day above 0 giving us a clear idea of what to focus on. The A/D lines both closed high on the day: +1937 on the NYSE and +920 on the NASDAQ. Finally the core sector list finished all green, closing at 16/0 to the bulls. 

Unusual Options Activity:

EEM / AAPL / ATHR / XLY

Stocks in scope:

BTU / CNX / ADBE (trig of 39/40 to the upside)

Food 4 Thought: 

Today i wanna keep my lesson light, and on the inner game side of things. Today's idea of focus is The Virtues of Failure. What i mean by this can be simply put in words from an old Nike/MJ commercial I saw, it always gave me chills, it wen like this - 

I've missed more than 9000 shots in my career.

I've lost almost 300 games.

26 times I've been trusted to take the game winning shot, and missed.

I've failed over, and over and over again in my life...

And that is why I succeed.

These words cannot ring anymore true than with a personal trader/investor. Our jobs are often self regulated and very much private. It can be tough some days to take a losing day, or a big loss. But the important thing to remember is that, every 'failure' is an opportunity to learn and transcend that error. I just want all my fellow traders to know that making a mistake is OK, taking a loosing trade is alright, if you follow your rules and guidelines, its OK.....just remember that the only thing worse than being wrong, is Staying Wrong!!

Till next time traders....

Today on the Marketbeat - Deal...Or NO DEAL ?!?!

Market #'s @ Close:

DOW: -777 to 10,365

S&P: -103 to 1,110

NASDAQ: -199 to 1,983

RUS2K: -47 to 657

TSX/S&P: -840 to 11,285

VIX: +11.98 to 46.72

Internals @ Close:

NYSE

BREATH: 25:1 Negative

TRIN: 0.5

A/D: -2900 Ticks

NASDAQ:

BREATH: 35:1 Negative

TRIN: 0.572

A/D: -2300 Ticks

Core Sector List: 16/0 To the Bears

Chart of /ES Futures (Click to enlarge)

I can see the late night shows tonight, Jon Stewart doing a lil piece of shtick making light of todays congressional meeting. Today the market continued its histroy making month of September as congress held voting on the Billion Dollar Bailout package today; and in some of the quickest congress action to date - voted against the bill for now. You know a day is going to have some epic to it when there are hour updates on newsletters that usually put out daily news. So today had epic day written over it before the bells even rang out. The market gapped down on the bell, and continued the slide down unti mid-mornign when it tappered off until the news hit the proverbial fan.

The news of congress not passing the bill sent an ential shock wave through the exchange and sent the indexes even lower (hitting lows of 1116 on the ES and 10408 on the YM). However, the downward slide did cease after the dust settled. 

 

Chart of Internals:

Under the hood was a complete mess, with the breathes reading levels that resemble closer to the odds at your local casino rather than a indicator (NYSE = 25/1-NASQDAQ = 35/1). The Trins were of little use, while the core sector list was a red bath coming in 16/0. OPverall, these are all levels that are almost unheard of in trading. We are litterally witnessing history on a daily basis as September 2008 will go down in history as the month that saw financials colapse taking alot of the market with it. 

Unusual Options Activity: 

PBG / EMC / GM / WOOF / EWW / IYR / SCSC