11:14 AM
Down & Down & Down she goes. No real change here. The market headed down today as predicted. DJ 30 Industrials down 240 points. Are we surprised? NOPE! Did we make money? Ya should have! Fair warning was given and the writing was on the wall. There was no big positive news. Thursday everyone was happy that Germany voted for the bailout. Friday, the talking heads said, “Oh....that was already priced in”!
The news Friday was primarily negative. Like DUH~! There's not much to be happy about in this global economy and the charts are sending the message to be ready for negative news. Friday the Eurozone CPI reported a spike of 3%, so forget a rate cute in Europe. And China's manufacturing PMI contracted for the 3rd month in a row. Ouch~! Yea, Chicago PMI was better as was consumer sentiment, but not by much, so everyone ignored the those reports.
Also, remember that the old adage "Sell Rosh Hashanah, Buy Yom Kippur" is in play here. (Rosh Hashanah began sunset Sept 28 and Yom Kippur begins sunset October 7) While not a sure thing, it does have some strong correlation. So just know it's there and pay attention. It's just another arrow in your quiver~!
The all important charts continue to tell us we are on our way down to test Dow 10,600 again and will most likely breakdown to Dow 10,000 in the coming sessions. A successful test of the psyche 10,000 level could lead to a nice Santa Rally! Keep an eye on RTH the retail ETF and strong retailers.
Daily and 3 day charts of the DIA below.
No change in the Trends.
Does it feel like the movie "Groundhog Day" to you too?
CURRENT MARKET TRENDS
Long Term (Weekly Chart) - Down
Medium Term (3 day chart) - Down
Short Term (Daily Chart) – Down
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