Sterling Market Commentary for Friday October 5th, 2012
A Look at Thursday’s Market: The overall market moved solidly higher in a broad based move that saw every sector index I track move higher on the day. The strongest sectors were the Gold/Silver, Financials, Commodities, Oil Services, Cyclicals, Telecom, Retailers, and Transports. Maybe we should call this a Romney Rally?? !!!!!
In the commodities markets, Oil rebounded sharply from yesterday’s losses by rallying $3.31 to $91.45 per barrel, and Gold was higher by $12.20 to $1,792.00 per ounce. In the Grain markets, Wheat was higher by $0.016 to $8.746 per bushel, and Corn was higher by $0.054 to $7.622 per bushel, while Soybeans were higher by $0.242 to $15.560 per bushel.
A Few Thoughts on Friday’s Market: In looking at the charts on the various indices I follow I am having a hard time getting excited about any of the upward movements I see. I thought it might be a case of pre-election blues, and then I decided to look at the volume levels. I am seeing low volume and a declining trend in the volume. This is not the stuff that market rallies are made of.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,575.36 I am now looking at upside resistance on the Dow Jones Industrial Average at 13,579.47 on a closing basis. I now see downside support coming in at 13,406.91 on a closing basis. Current Expectations: I am not quite sure. I think the next 2-3 days will clarify the direction of the market.
Dow Jones Transportation Average: The Dow Jones Transportation Average closed at 5,012.71. 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.