Sterling Market Commentary for Friday October 19th, 2012
A Look at Thursday’s Market: The overall market moved moderately lower in a relatively broad based move. The big news of the day was Google’s financial publisher, who files its reports with the SEC and the distribution of its press releases, accidentally released its earnings during the filing process. This resulted in the shares of Google ‘GOOG’ being halted from trading, and then opening sharply lower following their reopening for trading. These so called “fat finger” mistakes are unfortunate. They result from human error, and can be corrected by better controls and procedures. However I do not see this as something that the SEC needs to be involved in. This is just part of the market, it is just one of those things that happens. The companies that have their shares publicly traded do not need more regulations that increase the cost and difficulty in complying with the already complicated process of being a public company.
In the commodities markets, Oil was lower by $0.06 to $92.53 per barrel, and Gold was lower by $8.30 to $1,744.70 per ounce. In the grain markets, Wheat was higher by $0.122 t $8.684 per bushel, and Corn was higher by $0.152 to $7.606 per bushel, while Soybeans were higher by a whopping $0.362 to $15.454 per bushel.
A Few Thoughts on Friday’s Market: In looking at the charts from yesterday’s trading I did not see anything of significance. It was pretty much a lackluster trading day. I am expecting some more sideways action a head of next week’s final Presidential debate.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,548.94 With yesterday’s trading activity, I am now widening trading range by raising my upside resistance to the closing high set earlier this month. I am now looking at upside resistance on the Dow Jones Industrial Average at 13,610.15 on a closing basis. I now see downside support coming in at 13,273.32 and then 13,000.71 on a closing basis. I am expecting the Dow Jones Industrial Average to continue to move lower and test 13,373.32 on a closing basis.
Dow Jones Transportation Average: The Dow Jones Transportation Average closed at 5,156.54. I see upside resistance on the the Dow Transportation Average at 5,215.97 and downside support at 4,873.76 and then at 4,795.28. Current Expectations: I think the Dow Transports are going to track sideways between support and resistance for the foreseeable future.
The Bottom Line: I think the market will continue to trend sideways to lower for the next few trading sessions.