Wednesday’s Trading – 9/30/09

The XME has hardly rallied at all this week, and is, by far, the worst performing sector since the market’s peak on the 23rd. It is down 6.4% since then, which is almost twice as much as the second-worse XHB. The XME’s five-bar pattern on the daily chart is exactly what a bear flag should look like. A 100% completion would target the gap from September 9th down at 42.38. The SMN, the inverse ETF, would of course shoot up if the XME dropped. But we have big economic reports Wednesday morning, and if they fuel a rally, the XME might be expected to play “catch up” and outperform to the upside.

Breadth got very stretched on Monday, so a bullish take on Tuesday’s action would be that the market worked off a short-term overbought condition while only giving up a few points in the process.

Film at 11.

In other news… The new, giant, bunker-busters won’t be ready until December or January. So, probably no strike on Iran before then.

115 Responses to “Wednesday’s Trading – 9/30/09”

  1. paula says:

    Phil,
    Re: Glenn Neely
    Glenn was going to open a New York city
    office. I don’t know if he did or not. But
    he put out forecasts hoping to bring in
    big bucks. His forecasts were wrong. And
    now he has put out a CYA.

  2. Stringm says:

    Paula, George, Phil

    Thanks for the concern. The Doc told me I likely had a pinched nerve, he took xrays and said he would call if he saw something. He said I didn’t want anything to show on an xray because it would be bad. Xray is a poor tool to diagnose backs with according to him. Gave me muscle relaxers and anti-inflamatory drugs. Suggested an MRI in a couple of weeks if it was not better. Said sitting was the worst thing I could do outside of the bowling I tried the other night. Told me to keep walking because it would help. Doesn’t feel like it when I am walking though. I will get back to you Paula about those options. We are not below the 21DMA, so if Phil gets his way we haven’t even started the next down cycle yet. I guess I have time to prepare for the next up cycle. I am tempted to stick to beer instead of muscle relaxers.

    String

    String

  3. K says:

    Thanks Paula,
    took 3 we’ll see

    in other news. hourly futures chart shows VERY and I mean very strong resistance (5 moving averages in one place) at 1053.88-1054.45

    support at 1052.56-1052.98

    also today we got close to hitting a 38.2% fib retracement i had drawn a while back. that was at 1040.84 and we got down as far as 1041.50

    just sayin…

  4. paula says:

    String,
    SPX bounced at SPX 20 DEMA today. I’m
    raising my look out below SPX
    mumber to 1048.

  5. admin says:

    String,

    Hopefully it was just the bowling that strained your back.

    Matt

  6. Stringm says:

    Paula

    Zero Hedge had an article today on the Chicago PMI being a leading indicator to the ISM data and that tomorrows ISM might not be that hot. This whipsaw stuff does seem to happen at a critical junction just like George commented earlier. Today was fun to trade even though I was laying on my side typing with one left hand. I got thrown off one horse, but got back on another and made money for the day. I wasn’t pleased with my over all handling of it, but it was good emotional conditioning. I also learned from the experience.

    String

    I also didn’t know didn’t know that the members of that Purchasing PMI group gets the data 3 minutes before the open newswire. It sured showed on the tape. Something doesn’t seem Kosher about that.

  7. Stringm says:

    Matt

    The back is a long story. I hurt it palying raquetball. I have had this same pain and sensation about three times in my life. It is always in the same lower back area. It was getting better. Then I went on the hunting trip. My truck back seats fold down and I had a foam matress. I went to sleep pretty lubed because I had been with HS buddies of 40 years. Felt great when passed out, I mean went to sleep. Woke up 3 hours later and couldn’t move. The bowling just aggravated it more. You know most people don’t take long to look at a horseshoe, I obviously like to hold them a while.

    String

  8. Stringm says:

    HOT Horseshoe!

  9. K says:

    bears shorted, bulls bought on the dip. there will be only one winner come october. :D

    TED spread up 5% again.
    needs to break blue line strong before we start correction
    http://stockcharts.com/h-sc/ui?s=$TED&p=D&st=2009-01-01&id=p12046282847

  10. admin says:

    String,

    The Michigan Consumer Sentiment survey is like the PMI. They are produced by private companies for their paying subscribers. Once the subscribers have them, they release them to the media. Without the subscribers, they wouldn’t be able to produce them. So, you have to be ready for the tape to react before the release – either that, or become a subscriber yourself.

    Matt

  11. Stringm says:

    Matt

    Is the ISM data tomorrow the same way too?

    String

  12. admin says:

    String,

    I don’t know. Maybe you can google something up though.

    Matt

  13. paula says:

    String,
    Congrats on your trading today. Take
    care of your back…pray you recover
    quickly.

  14. K says:

    looks like Cramer will be the Comcast guy

    Comcast, the nation’s leading provider of cable, entertainment and communications products and services, is in talks to buy the entertainment giant NBC-Universal from General Electric, according to knowledgeable individuals.

  15. K says:

    Mitch,

    From zerohedge

    The Fed Rightfully Believes That Protecting Goldman Is “In The Interest Of The U.S. Economy And The Interest Of The Public”

    http://www.zerohedge.com/article/fed-rightfully-believes-protecting-goldman-interest-us-economy-and-interest-public

    lol no need to read but :P