Today on the Marketbeat: 10% retracement in 2 days? Hmmmm

MArket #'s @ close:

DOW: -443 (4.8%)

S&P: -47 (5%)

NASDAQ: -72 (4.7%)

RUS2K: -

TSX/S&P: -

VIX: +9.31 to 63.87

Internals: 

Core Sector List - 16/0 to the bears

NYSE

BREADTH: 18/1 neg 

TRIN:

AD LINE: -2000 ticks

NASDAQ

BREADTH: 9/1 neg

TRIN:

AD LINE: -1600 ticks

Today on the Marketbeat: 10% retracement in 2 days? Hmmmm 

Today the market continued its selloff of overbought areas, down 4-5% on most major indexes. The internals were fgully in the red today as the core sector list came in at 16-0 tot he bears and the nyse breadth closed at the lows of 18-1 negative. As much as it was expected to pullback, but 10% in two trading days is always a surprise to us. We could see a continue of this slide 2morro or a early buying oppertunity only time shall tell. 

As usual let the market show us its hand, if we spike to the upside there are plenty of BTD candidates to chose from. Manage your risk and as always have fun....till the weekend take care and good trading everyone

Today on the Marketbeat: Obama makes history, the Market reacts...

Market #'s @ Close:

DOW: -490

S&P: -53

NASDAQ: -98

RUS2K: -23

TSX/S&P: -223

VIX: +7.5 to 55.22

Internals:

Core Sector List: 16/0 to the Bears

NYSE

BREADTH: 8/1

TRIN: 3

AD LINE: -1900

NASDAQ

BREADTH: 9/1

TRIN: 2.38

AD LINE: -1600

Today on the Marketbeat: Obama makes history, the Market reacts...

So all the ballots are in, and Obama has made history, as was priced in, making himself the first African American President of the United Stated of America. Politics aside, because I don't really care for them, This was a day the market was waiting for, and now that its gone, time to get back to finance. 

The Market gaped lower this morning and came close to filling the gap very quickly into the trading day. After which it hit the sell button until midday where it took a lil breather for most of the afternoon until it hit the sell button again towards the end of the day. This was somewhat to be expected as the market has been rallying a fairly decent amount in the past couple of days, a retracement was in need as the Bullish percent index as well as the McClellan index also reached overbought areas yesterday. What we should be watching for as personal traders is the market to retrace a bit more and then catch alot of the nice Buy the Dip setups that are a dime a dozen in this climate. Options are still slightly expensive but are becoming a better choice as the VIX falls (remember as the VIX falls the option premiums will follow suit).

Under the Hood the market internals were as bearish as one could ask for, with the Trin making higher highs all day, and the AD lines tacking on some solid losses. The Breadth closed the day @  and  on the NYSE and NASDAQ respectively. And the Tick spent a good majority of the day under zero giving traders a good idea to stay short on the short term. 

Buy The Dip:

POT - FDX - DLTR - CHK - LZ - UYM - MO - DE

Today on the Marketbeat: And the winner is? The Bulls!!

Market Numbers @ Close:

DOW: +303

S&P: +39

NASDAQ: +53

RUS2K: +7

TSX/S&P: +421

VIX: -6

Internals:

Core Sector List: 15/1 to the bulls, Gold leader - 

NYSE

BREADTH: 7/1 to the Bulls

A/D LINE: 1700 ticks

TRIN: 0.58

NASDAQ

BREADTH: 5/1 to the Bulls

A/D LINE: 800 ticks

TRIN: 0.38

Today on the Marketbeat: And the winner is? The Bulls!!

The election day got off to a hot start in US equities as the Dow and S&P opened up on a solid gap up to R1. After which it backed off a bit only to bounce off that days low to rip up to R3 on each respective index. From here on in it was pretty much a chop fest from 11:30 to 2pm as the bulls and bears went to go vote. Around 2pm the market lost R3 and bounced off R2 to rally into the close with the S&P rallying into the close and holding 1000 on the day into the close (closing @ 1002 on the ES futures and 9590 on the YM)

Under the hood, the markets were essentially bullish all day, as the breadth closed @ it's highs giving the bulls a 8/1  day on the NYSE and a /1 day on the NASDAQ. The AD LINES tacked on some solid gains, + on the NYSE and + on the NASDAQ while the TRIN is starting to take its place again closing near the lows. The Tick spent most of the day above 0, telling us to stay bullish on the day.

Overall It was a solid rally day, especially since it was also a Presidential election day. Knowing that tomorrow the US will have a new president, one could be shocked at the lack of indecision. However now that alot of the big headlines are almost out of the way, one could see the correlation with the markets willingness to hold onto gains, instead of pissing them away. 

My outlook for tomorrow really depends on the headlines on the newspaper, aka who wins. Its not that I believe which party wins will have a big effect on the direction of the markets. I believe just knowing who wins will. What I mean will if there is a tie or re-count the market could re-act badly. However, if there is a clear cut winner, we could see the markets tack on some more gains, or retrace a bit, either way we as personal investors know our roles, and that is 1) Wait for the market to show its hand, 2) act on it. Now many plays are setting up for Buy the dips. I will list those candidates here

Buy the Dips:

VLO / MMM / UAUA / SLV 

Other nice looking setups:

PEG / AEP / OIH / SMH / DBA / MCHP / PPG

Today on the Marketbeat: The quiet before the storm...

Market Numbers @ Close:

DOW: -5

S&P: +1.75

NASDAQ: +10

RUS2K: +2.3

TSX/S&P: -19

VIX: -6.26

Internals:

Core Sector List: 10/6 to the bulls

NYSE

TRIN: 1.32

BREADTH: 1/1 Parody 

A/D LINE: +400

NASDAQ

TRIN: 1.19

BREADTH: 1.1/1

A/D LINE: +330

Today on the Marketbeat: The quiet before the storm...

Unless you have been living under a rock for the past year, you know that tomorrow night we will usher in a new president of the United States. Gone will be Bush and in will be either McCain or Obama. Today's lack of market direction really lends itself to the fact we have a presidential election coming soon, in that many investors and personal traders probablly didnt want to commit too much to either side before the news hit the fan sometime tomorrow night. When you hear the saying "let the market show you its hand" this is the type of scenario where you want to let the news show the market where it will play its hand, and then have some setups for both possibilities and once the market shows its hand, you ride it either way. Days like today are very huge in terms of diversification and risk management. Getting long or short in front of a presidential election is asking for some sort of trouble, most likely of the financial and stressful kind. Simply put the market showed didnt lend itself to either direction so a wise thing would be to do the same. Watch and enjoy the show, and be ready to jump in.