Traders Corner   12 comments

No daily notes today, as I am a little pressed for time. However, in checking the news this morning, I didn’t see anything market-shaking. Frankly, the week ahead is a little light in significant economic reports, so there is no point in even bothering with a “look ahead”.

Which brings us to the S&P 500’s technicals. Friday’s move up was a head-scratcher. It pushed the daily technicals a little closer to overbought (although still neutral), and it kept the weekly technicals in the overbought category. On top of that, the Bollinger Bands are starting to contract, which usually happens before a big move, but that move can be up or down. With futures slightly up this morning, I would recommend caution here, although I won’t go so far as to make any kind of predictions. The S&P 500 is in need of a weekly correction, and Friday’s move up left the S&P 500 only slightly down for the week.

The S&P 500 levels to watch today:

UPSIDE: 1806 (December 6th’s high), 1810 (December 2nd’s high), 1813 (November’s high and the all-time high), and 1815 (top of the Bollinger Bands).
LAST CLOSE: 1805.
DOWNSIDE: 1794-1803 (3 data points), 1792 (December 5th’s high), 1791 (20 day moving average), 1787-1788 (2 data points), 1783 (December 5th’s low), 1779 (December 4th’s low), 1775 (October’s high), 1768 (bottom of the Bollinger Bands), and 1751 (50 day moving average).

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12 responses to “Traders Corner

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  1. My SPXU strategy today: I will either double it at $16.16, sell it at $16.75, do both, or sit back and watch it bounce between those 2 numbers.

  2. Ed

    How do you think this will effect elections and markets? Seems that one thing after another keeps coming out. If they don’t screw it up could have congress be all republican next year.

    http://news.yahoo.com/seymour-hersh-alleges-obama-administration-lied-syria-gas-204437397.html?soc_src=mediacontentstory

    • Bobb,
      The only way for this to affect an election would be for the Media to cover it. This story will be long buried by next November.

    • Wishful thinking. These things do not matter in local elections. I believe the only issue resonating now that will matter in the 2014 elections is Obamacare. Despite the hue and cry the reality is that we have yet to see the actual impact and how many people will really be helped and hurt by the ACA.

      As for the report we will see how accurate it turns out to be. At this point the last 13 years should have taught us that whatever happens outside the US our intelligence is always a little suspect and prone to interpretation. People seem to have no understanding of how chaotic these situations are and how much contradictory intelligence is available. Coming to the most logical conclusions based on the information at the time doesn’t mean the conclusion will be right in the end.

      Robb

  3. Hey Ed

    On any pullback in market what are thoughts on nsrgy?

    • Ojunker,
      Nestle is a good company, but their stock is hugely overpriced for my tastes. They aren’t a growth company, so why are they priced like one? Their dividend isn’t THAT good! (2.9%, paid once a year)

      It would have to be a BIG pullback to get me interested.

  4. Not bragging and I know it won’t last but I am 100% in the green so far today.

    Ok, I’m bragging

  5. Since it appears to be a slow day ……….. What does everyone think about this article?

    http://www.bloomberg.com/news/2013-12-09/spotify-isn-t-why-musicians-can-t-make-a-living.html

    • Personally (and I’m not a big music fan so take that into account) I think the article glosses over a lot of important facts.
      Lets get real about the “musicians can’t make money”, and the premise that they are so much worse off now.

      If you backup to what the author seems to be the “good old days”, you will see that a few musicians made tons of money and almost everyone else either played their music live/local to make a living or they didn’t make a living off of their music at all.

      There were very few “winners” in this system. Mostly it was the recording industry that made all the money.

      I don’t see much different these days. There are still a few that make the big bucks, and then the rest get a much small piece of the pie.

      I do think that the person that never got the backing of the recording industry is better off. At least their music is out there, and at least they are getting something. Before it you couldn’t get a radio station or the record industry to pick up your song then the only people that could possibly hear it, heard it live when you sang somewhere.

  6. Bought back some of the December 34 UCO call options I sold on October 28. Sold for 1.15, paid .10. I’ll hold to see if it moves higher. Looking to sell calls again.

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