9/29 - Market Analysis

In the News
- bailout rejected by house of reps today..dems voted for it, republicans voted against it...
- market made biggest point drop in years...
- biggest point drop ever for DJIA - down 777 points...still lucky number?

Technicals
- all supports broken
- very nice volume that shows strong selling
- nasdaq weakest
- iwm only major average that is still holding major support
- commodities was one of the hardest hit

Commentary
- today was like earnings for the market. estimates were in and predictions were made. since a week ago, new money has been trapped in the market anticipating that paulson's bailout would get passed causing a strong rally. today, traders realized that that might not happen..atleast not yet. and hence, the weak hands sold off with strong panic...as for the "conference call", congress once again dissapointed the market by pointing fingers...they did not give optimistic statements, therefore, the market fell to its lows in the last hour of trading...
- today was basically just a huge earnings miss and bad forecast...


SPX
- huge bearish candle
- big volume
- weak all day
- no sector spared
- no near support


NDX
- hit very hard
- big cap tech did not hold up...instead they lagged
- volume is exceptional...
- no nearby support


XLF...
- still got support below


RKH...
- on good support
- able to finish off its lows
- not surprised if we bounce up from here, leading the market


UUP
- strong resistance
- should have rose much more if bailout didn't pass
- telling us maybe bailout might pass very soon


USO
- fell like a rock like all other commodities
- can fall much more from here...
- don't touch!


Advance / Decline
- like the markets, it was very one-sided...a true selloff...


Analysis: Its a beautiful time to be sidelined...action in the market and the news everyday is exciting..bad of ppl who are investors as its neither a good time to buy nor sell...its a holding game...i am waiting for a good chance to get long commodities...nothing falls in a straight line, so all we can do is be patient and look for good setups...tomorrow should yield some gov't intervention of some kind. paulson and the fed will not just let the markets freefall...get ready for a fed rate cut, an emergengy meeting to revote on the bailout....something...this is what has been happening everytime there has been true panic and sadness on wall street..i don't expect it to be any different this time around...shorts should have taken profits and longs should have held...tomorrow or very soon, there will be some relief...