Traders Corner   7 comments

The S&P 500 futures are mildly positive at the moment, after a disappointing jobs report. Why so positive at bad news? Because bad news is good news in this QE-world…

However, while most technicals aren’t overbought (Williams %R is the only exception I see at the moment), most technicals are pretty close to overbought. Yesterday’s sideways move relieved some of the pressure, but an upward move will probably put us back where we were over the weekend. A strong upward move will likely guaranty a sell-off tomorrow.

The S&P 500 levels to watch today:

UPSIDE: 1745 (October 18th’s high and the top of the Bollinger Bands), and 1747 (October 21th’s high and the all-time high).
LAST CLOSE: 1744.
DOWNSIDE: 1740 (October 21st’s low), 1735 (October 18th’s low), 1733 (October 17th’s high), 1729 (September’s high), 1721 (October 16th’s high), 1714 (October 17th’s low), 1711 (2 data points), 1709 (August’s high), 1703 (October 11th’s high), 1700 (October 16th’s low), 1698 (July’s high), 1697 (20 day moving average), 1691-1696 (7 data points), 1687-1688 (2 data points and May’s high), 1680-1682 (2 data points and the 50 day moving average), 1676 (October 8th’s high), 1674 (October 7th’s low), 1670 (October 3rd’s low), 1662 (October 9th’s high), 1660 (October 10th’s low), 1654-1655 (October 8th’s low and June’s high), 1650 (bottom of the Bollinger Bands), and 1646 (October 9th’s low).

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Posted October 22, 2013 by edmcgon in Daytrading, Investing, Market Analysis

7 responses to “Traders Corner

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  1. Look at the PE of the Russel 2000 on this link http://online.wsj.com/mdc/public/page/2_3021-peyield.html compared to last year and other indexs. Does it make any sense that it would be so high?

    • MikeA,
      Yes and no. If last year was the same as this year, with all things being equal, I’d look at it and say it’s insane. However, after 12 more months of the Fed pumping money into the financial sector, it makes perfect sense. If the Fed keeps it up for another 12 months, that PE could easily be 160 or higher.

      This is perfectly normal for when the stock market goes into a bubble.

  2. I sold my STO today. This is a stock I have owned for a long time (almost two years). My total return on them was a mere 8% (broader market was 30% in the same time frame). While I like the idea of Norwegian Oil and they have a decent dividend, I have decided these state oil companies just are not as well run as private companies. I will keep the returns in cash for the time being, no immediate purchase plans.

  3. With dividends. Actual stock price move was very small

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