Very strange day. We make new DOW all time highs, but techs and the SOX lag and the advance decline line is somewhat pitiful. The energy sector is downgraded sending oil to lows not seen since November of last year while SPX rallies even though most of the earnings growth the past three tears has come from energy. Gold tumbles even though North Korea will launch a nuclear test and prospects for a higher dollar are dubious at best. Inflation is still a problem, it might not be energy related but the core rate is well above the comfort zone. In any case, not a time to be a hero in any sector.
NQ has stiff resistance at 10 DMA and weekly pivot, 1661/1663, so keep an eye on that one going forward. If oil inventories tomorrow are plentiful, they could send crude down to 57.50/57.75, where it should find some measure of support. December gold closed a gap at 579 and we will see how it holds up with the Korea business.
The market seems in to be complete denial while it pursues the "all time high" quest. Earnings warnings, geo-political red flags and a slowing economy are dismissed as non-events and all that matters is lower oil. We'll see about that, but for now, hedgies are having fun hitting the stops of all the shorts out there. Bull are on thin ice if you ask me.
NQ has stiff resistance at 10 DMA and weekly pivot, 1661/1663, so keep an eye on that one going forward. If oil inventories tomorrow are plentiful, they could send crude down to 57.50/57.75, where it should find some measure of support. December gold closed a gap at 579 and we will see how it holds up with the Korea business.
The market seems in to be complete denial while it pursues the "all time high" quest. Earnings warnings, geo-political red flags and a slowing economy are dismissed as non-events and all that matters is lower oil. We'll see about that, but for now, hedgies are having fun hitting the stops of all the shorts out there. Bull are on thin ice if you ask me.
This entry was posted
on Tuesday, October 03, 2006 at 8:25 PM.
