Wednesday, October 04, 2006

Market Action Oct 4/06, and the first change on the website!

So, the first change of the site - our source of charts! I noticed the place I was getting my previous charts was giving me really, really delayed numbers. And we can't have that now, can we?

Didn't think so. So now, I'm using charts from a different source (Prophet.net) Thanks Tim!

Are you surprised by what's going on in the markets? I am! Just when you think things will start coming back down to earth, something like a 100+ point day on the Dow totally shuffles up everything.

Before getting into today's action, I'm very excited to tell you the good news: the NEW marketing campaign on Ebay just started (check out our new listings - user_id Stockshaker).

So. Today. Wow.

Do you remember the move Terminator 2? There was that scene when Arnold is driving around on a car, and the metallic man of a bad guy has these crowbar-like handles of arms, holding on to the bottom of the car. Arnold whips out his trusty weapon, and fires at T1000. No matter how many times he fires, this guy keeps up with the vehicle. Very relentless!

That is exactly how the markets are. Just when you think its ready to fall/pull back, it holds up - But just like T1000, the markets eventually have to get tired.

But will it be tomorrow that it will decide to slow down the pace, and catch it's breath? We'll have to see.

So what happened today? Here's the graph of the SP500


Above is the SP500 (or the SPX). How do you guys like the charts? Looks pretty spiffy, no? Anyways... today was a pretty big technical milestone. The SPX broke the channeling (I've bounded the channel between the two green lines - and circled, Point A). Also, the SPX broke 1340, its former ceiling - another bullish sign.

And just to hit the ball out of the park, the volume (point C) was a pretty big spike (much higher than the 30 day average on this index).

Now, the support levels, should this baby decide to go to bed tomorrow, would be 1340 or even better, Point B, which also coincides to the former high in May.

If you read many info sites and other blogs, many people are saying, "Don't trust this rally - Earnings are coming!" Now, I don't predict the future, I just play what I have, and make alternate plans should things go against me, but today is a breakout (Did you guys see the huge bullish engulfing candlestick on the Nasdaq??? WOW!)

If earnings come in negative, the charts will tell! Then you trade accordingly, right? RIGHT!

Until tomorrow, see you later! And don't forget to check out the Ebay listings!

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