Sterling Market Commentary for Tuesday October 23rd, 2012

Sterling Market Commentary for Tuesday October 23rd, 2012

A Look at Monday’s Market:  The major market indices finished Monday slightly higher on a day that saw the majority of the sector indices finish the day slightly lower.  There really were not any big movers on the day.  In reviewing the charts from Monday’s trading, it really looked like traders were squaring up their positions prior to last night’s Presidential Debate in case there were any surprises during the debate. I watched the entire debate. I really did not see any surprises other than a lack of a discussion on the Benghazi attacks.  Basically I did not see anything in the debate that I thought would move the markets on Tuesday.  In Monday’s commodities markets,  Oil was lower by $1.79 to $88.65 per barrel, and Gold was higher by $2.30 to $1,726.30 per ounce.  In the grain markets, Wheat was higher by $0.056 to $8.782 per bushel, and Soybeans were higher by $0.122 to $15.464 per bushel.  We were not able to retrieve any pricing info on Corn.

A Few Thoughts on Tuesday’s Market:  It is earnings season, and so far the net income and revenue numbers that have been reported are not promising and they show an economy that is showing signs of slowing.  In looking at the charts from yesterday’s market, I am still looking at a market that is under pressure.  My thoughts are that like any form of market manipulation it can only go on for so long before reality sets in, and that is what we may be seeing start to happen with the Fed’s Quantitative Easing programs.  They can only cover up a weak economy for so long.

The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,345.89   I am 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.  Current Expectations:  I think we are starting a new trend lower in the Dow.  I am expecting the Dow Jones Industrial Average to continue to move lower and test 13,273.32 on a closing basis.

Dow Jones Transportation Average:  The Dow Jones Transportation Average closed at 5,064.48  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 move lower for the next few trading sessions.