Choppy Day
October ended the month at +8.6%,
as the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed at
885.76 vs. the high close of 899.72 and an intraday high of 907.44. For the past
10 days, the average of the all the closes for the SPX is 890, which has been a
good number for daytraders this month. Things happen around key numbers. It was
a big program month, in fact, it looks like the biggest one this year with the
help of some of the pensions swapping from bonds to equities. For the
daytraders, this program volatility is excellent, as the trading opportunities
increase exponentially which is the sequence trader’s dream.
NYSE volume yesterday was
the highest for the week at 1.5 billion, which is about 10% above average, the
volume ratio was 42, and breadth +370. The regulators keep a close eye on the
last day of the month, so most of the mark up comes before and then it’s usually
a holding action the last day, provided there is no compelling news at the time.
The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) ended -0.4%, SPX -0.6%, while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
was +0.2%. Just a choppy day.
The sector action was as
choppy as the major indices. The day’s disaster was
(
THC |
Quote |
Chart |
News |
PowerRating), as it closed at
28.75, down 26% on 800% more than its average daily volume. The stock was in an
excellent trending pattern, and then you get overt news from left field, which
is the bane of all position traders and portfolio managers. Not much you can do
about it.
We start the month
short-term overbought and the once-a-month jobs fiasco with the futures
scheduled for 8:30 a.m. ET this morning. If the empty suits didn’t have that and
Harvey Pitt to kick around this morning, they would just have to turn on some
music. The indices are still locked in ranges, and it remains to be seen how
active the Generals get the first few days of the month, so trading range
tactics are in order.
I am doing this at 8:15
a.m., so the jobs game hasn’t started yet. I hope Rick whatever-his-name-is in
Chicago has a good voice this morning so we can hear all of the drivel. Get
ready to play the overreactions.
Have a good trading day
and have a great weekend.
Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Thursday’s NYSE TICKS