10/2/2011 Stock Market Review

Here is our weekly video on the market indices what happened last week and potentially what we need to be watching to trade successfully this week. .  Looking at the major indices along with etfs for key commodities.

Afternoon folks!  Hope you all had a great weekend and enjoyed the decimation of the Dallas Cowboys by the 4-0 DETROOOOOOOOOOOOOOOOOOOOOOOOOOOOIT LIONS!  Crazy Week in the markets we started off with so much potential but as always we faded at resistance.  If anybody doesnt believe in technical analysis show them a chart of the s&p the last 7 weeks.  The fade this week was almost a gimme and happened right at a sweet spot.   Overall we had a flat week with 1 big pop then a continuous fade. The s&P finished down .44% for the week.

We had a lot of lot of good and bad last week which leaves us right where we started range bound.

Support continues to hold that spx 1120-1110 zone is acting as strong support. The bears are having trouble breaking us down.

Europeans are still showing some union with this Euro Tarp program.  It seems as of now they have the will to defend their union.  This of course can change in a hot second as many of the political leaders are under pressure from their citizens to not bailout the citizens of others.

We have a potential 4th quarter run if the market can show any sustained strength as traders will chase performance into our annual santa claus rally.

People are very bearish… its hard to find any traders with anything positive to say about the market.  Very few will even admit to thinking about going long.

On the otherside the price action towards the end of last week was very bearish. We made lower highs lower lows for most of the week after our big gap up day.

Emerging markets and china look very sick.  China stocks and the china etf FXI  which measures their 25 largest adr’s looks very sick.  If the chinese market starts to really dip that could take down the rest of the world.  There are signs all around that the chinese economy is a house of cards.

Copper, silver, oil all are showing incredible weakness.  If the world is growing why are these essential commodities getting whacked.  I have a feeling if we can get some of this european mess taken care of the market could have a very sharp bounce.  But soon after that we might have to start dealing with a different news cycle which could be a recession in the U.S. and a big slow down in Bric countries like china.

tough market if you dont have some serious trading skills. Capital preservation is key along with defensive posturing in your portfolio’s.  We’ve seen these markets before.  They will end at some point and give us a trend in the meantime keep learning and keep fighting but dont let your portfolio get damaged.    Im seeing some good things in the chatroom alot of you guys are starting to really get a handle on things and show some great skill.  Ive seen this stuff before.  Stick by me and keep learning we will get through this as we always do these things always pass