R.C. Market Report 10.14

• Market Trend: Downtrend

• The market gapped up nearly 400pts on the Dow within a couple of minutes of the open and that was worrisome. By midday, we had a 700pt reversal that had the Dow at 300pt loss, any more of which would have been worrisome. In the end, it turns out to be 76pt drop. Today's profit taking action was adequate.

• There's no clear signal as to whether we'll go much higher tomorrow or lower. Market managed not to collapse during profit taking, a real positive for the bulls. For the bears, market did sell off for 700pts at one point and today's volume was greater than yesterday's. Traders seem to say that they are going to focus on earnings to gauge the market now. With so much uncertainty, correct assessment of the market based on earnings is not such a bad idea.

• So far, Intel and Genentech are up after reporting earnings. Tomorrow morning we'll have JPM and WFC, two of the best banks in america, report their earnings. I do not recommend playing bank earnings at this point, but I would favor the market going up rather than down with these scheduled earnings reports.