Thursday, October 3, 2013

SPY - October 3 2013 Those are some sweet looking bumps!


The daily chart for SPY looks very sweet, nice moves up, higher highs and higher lows....but is it too sweet? Just when things are looking nice and rosy the market has a way of cutting the legs out from under you. Fro the time being stick with the upward trend.


The weekly chart looks just as sweet if not even better...smoother. However, there is the continuing and ever present decreasing volume. That steady volume line heading down is of concern, again perhaps a warning signal. The declining volume alone can't keep one out of the market, keep riding the bull with all you have.....but be wary. Is a US government default possible, could that be "The Event", it certainly appears both sides are dug in and waiting it out in their political trenches.

1 Comments:

At October 3, 2013 at 7:09 PM , Blogger theyenguy said...

The late September 2013, S&P 500, $SPX, price of 1709, and SPY price of 172, reflects an Elliott Wave 5 High. Thus the October 1, 2013, rally marked the short selling opportunity of a lifetime, as in a bull market one buys into dips, but in a bear market, one sells into pips.


Thursday, October 3, 2013, was a bearish day, as ETF Daily News reports Outer limits of monetary policy and inflation and the Finviz Chart of the Market OFF ETN, OFF, rose, and the Yahoo Finance Chart of Volatility, ^VIX, also rose, stimulating Volatility ETFs, TVIX,VIXY,VIXM, higher. The Great Bear Market that commenced Friday September 20, 2013, recommenced Thursday, October 3, 2013, as is seen in the 200% Bear Market ETFS, such as BIS, FXP, SQQQ, SDD, SSG, trading higher.


The chart of the S&P 500, $SPX, shows a 0.9% close lower at 1,697; its 50 day moving average.


Nations trading lower included

Indonesia, IDX,

Mexico, EWW

Philippines, EPHE

Turkey, TUR

Brazil, EWZ, and Brazil Small Caps, EWZS


Sectors trading lower included

Inverse Volatility, XIV

Solar, TAN

Internet Retail, FDN

Nasdaq Internet, PNQI

Biotechnology, IBB

Homebuilding, ITB

US Infrastructure, PKB

Media, PBS

Design Build, FLM

Small Cap Pure Value, RZV

Aerospace, IBB

Small Cap Industrials, PSCI

Industrials, XLI

Paper Producers, WOOD

Automobiles, CARZ

Steel, SLX

IPOS, FPX

Consumer Discretionary, IYC

Retail, XRT


Yield Bearing Sectors trading lower included

Utilities, XLU

Global Real Estate, DRW

Real Estate, IYR

Leveraged Buyouts, PSP


Of note, Global Consumer Staples, KXI, seen in this Finviz Screener, which includes TSN, PG, KRFT, MDLZ, CAG, and GIS, is a loss leading sector, since September 20, 2013, as is seen in their combined ongoing Yahoo Finance Chart.


The decline in the price of Gold, $GOLD, since late August 2013, is a buying opportunity, as the Gold ETF, GLD, is in an Elliott Wave 3 Up, from its early July 2013 bottom of 117.5, as is seen its Weekly Finviz Chart. The Elliott Wave 3 Ups, are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the ascending five waves


On Thursday, October 3, 2013, Spot Gold, $GOLD, closed at $1,316, with support lower at $1,300 and a strong floor at $1,275. The chart of the Gold ETF, GLD, rose slightly, to the edge of a massive consolidation triangle, to close at 127, from which it will either break out, or break lower. Either way, it is wise to Dollar Cost Average, an investment in the purchase of gold bullion, as in the age of authoritarianism, the possession of gold and diktat, will be the two forms of sovereign and sustainable wealth.



The chart of the Euro, FXE, shows a close at 134.82; I suspect that this is its rally high.


The chart of the Yen, FXY, shows a close at 100.54; I suspect that it is reaching its rally high.


The Yahoo Finance chart of the EUR/JPY, and the Google Finance Chart of the EUR/JPY show a close at 134.45; from which I expect a trade lower, as the Great Bear Market of all time gets strongly underway.


The Interest Rate on the Ten Year US Note, ^TNX, traded slightly lower to close at 2.61%.

 

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