Sterling Market Commentary for Tuesday October 2nd, 2012
A Look at Monday’s Market: The overall market was mixed on Monday with the S&P 500 and the Dow Jones Industrial Average finishing the day moderately higher while the NASDAQ finished the day slightly lower. Among the indices I track there was strength in the Airlines, Natural Gas, Gold/Silver, Biotech, Insurance, Healthcare related, Commodities, Transports, Retailers, and Financials. There was weakness in the Telecoms, High Tech, and Utilities. In the commodities markets, Oil was higher by $0.29 to $92.48 per barrel, and Gold was higher by $9.40 to $1,780.50 per ounce. In the Grain markets, Wheat was lower by $0.182 to $8.842 per bushel, while Corn was higher by $0.004 to $7.566 per bushel, and Soybeans were lower by a whopping $0.406 to $15.602 per bushel.
A Few Thoughts on Tuesday’s Market: In reviewing the charts from yesterday’s trading activity, I did not see any indications of real strength in the market. The charts with the clear patterns appear to be breaking to the downside. To me this is a sign of continuing weakness; and it creates a strong belief that if it were not for the market manipulations of the Fed, and if it were not for the Fed manipulating the market it would be a lot lower.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed Friday at 13,437.13. I continue to see upside resistance on the Dow at 13,558.92. With Friday’s close of 13,437.13 the Dow Jones Industrial Average broke our support level of 13,345. I now see downside support coming in at 13,279.32 Current Expectations: I am expecting the Dow to continue to move lower and test 13,279.32 on a closing basis.
Dow Jones Transportation Average: The Dow Jones Transportation Average closed Monday at 4,899.73. I continue to see upside resistance on the the Dow Transportation Average at 4,951.07 and downside support at 4,873.76 and then at 4,795.28 This is obviously a very narrow trading range. Current Expectations: The Dow Transports appear to be in a downward trend. I am expecting Dow Transports to continue to move lower and test 4,873.76 on a closing basis.
The Bottom Line: I just do not see any strength to the market, and continue to have concerns about it moving lower.
|Sterling Calendars for the Week of October 1st, 2012|
|10/02||2:00pm||Auto Sales||Sep.||N/A||5.3 M|
|10/02||2:00pm||Truck Sales||Sep.||N/A||6.3 M|
|10/03||7:00am||MBA Mortgage Index||09/29||N/A||2.8%|
|10/03||8:15am||ADP Employment Change||Sep.||133K||201K|
|10/04||7:30am||Challenger Job Cuts||Sep.||N/A||(36.9%)|
|10/04||8:30am||Initial Jobless Claims||09/29||365K||359K|
|10/04||8:30am||Continuing Jobless Claims||09/22||3,273K||3,271K|
|10/05||8:30am||Nonfarm Private Payrolls||Sep.||130K||103K|