October 25, 2012 at 08:39 AM EDT
Be Careful About Buying These Dips!
Thursday, October 25, 8:35 a.m. Since mid-September the price of oil has plunged $14 a barrel or 14%. The S&P 500 has declined 4.1%, and the Nasdaq 6.3%. Just over the last two weeks gold has plunged $93 an ounce, or 5.2%. The has created short-term oversold conditions that look tempting, and rally attempts are [...]

Thursday, October 25, 8:35 a.m.

Since mid-September the price of oil has plunged $14 a barrel or 14%. The S&P 500 has declined 4.1%, and the Nasdaq 6.3%. Just over the last two weeks gold has plunged $93 an ounce, or 5.2%.

The has created short-term oversold conditions that look tempting, and rally attempts are likely.

But the charts are saying be careful. The previous support at 50-day moving averages has been broken, and may now be overhead resistance.

In fact in some cases, like oil and the Nasdaq, the 50-day m.a. has already been tested by at least one rally attempt and held, indicating it it is now potentially overhead resistance, and rally attempts might be better handled by selling into them if they approach the m.a.

102512b

102512c

To read my weekend newspaper column click here: Gold Has Lost Its Glitter Again!

Subscribers to Street Smart Report: There is a hotline from last night and an in-depth U.S. Markets update from yesterday afternoon in your secure area of the Street Smart Report website. There will be an in-depth ‘Gold, Bonds, Dollar, Commodities’ update for you there later today.

A Big Thank You to:

Cate Benz at RestlessBoomers.com for the kind words about our work and for including my recent article in their content.

And to Dave Robinson, editor of The Monetary Digest for featuring my article ‘Consumers and Investors Confident Even as Global Recession Threatens!’ in his great publication.

And to Joseph L. Shaefer, CEO of Stanford Wealth Management, for featuring Street Smart Report as one of his seven “favorite websites among the thousands out there” in the “Other Voices” section of his firm’s new website (www.stanfordwealth.com). “Sy Harding is, quite simply, the best technician I’ve ever met.” Wow. Thanks, Joe. 

Yesterday in the U.S. Market.

A fairly quiet day after the plunge of 445 Dow points over the previous 3 days. The Dow was up as much as 53 points in the morning but sold off in the afternoon to down 40 points, before recovering some to close down only 25 points. Trading volume remained light, only 0.6 billion shares traded on NYSE.

The Dow closed down 25 points, or 0.2%. Similarly the S&P 500 closed down 0.3%. The NYSE Composite closed down 0.2%. The Nasdaq closed down 0.3%. The Nasdaq 100 closed down 0.4%. The Russell 2000 closed down 0.3%. The DJ Transportation Avg. plunged 2.0%. The DJ Utilities Avg closed down 0.7%.

Gold closed down $6 an ounce at $1,703 an ounce.

Oil closed down $.43 a barrel at $88.30 a barrel.

The U.S. dollar etf UUP closed unchanged.

The U.S. Treasury bond etf TLT closed down 1.0%.

Yesterday in European Markets.

European markets bounced back some yesterday. The Europe Dow closed up 0.4%. The London FTSE closed up 0.1%. The German DAX closed up 0.3%. France’s CAC closed up 0.6%. Greece closed up 1.9%. Ireland closed up 0.6%. Italy closed up 0.8%. Spain closed up 0.6%. Russia closed down 0.1%.

Asian Markets were down fractionally Tuesday night and mostly back up last night.

The Asia Dow closed down 0.2% Tuesday night, and up 0.6% last night.

Among individual markets last night:

Australia closed up 0.1%. China closed down 0.7%. Hong Kong closed up 0.2%. India closed up 0.3%. Indonesia closed up 0.1%. Japan closed up 1.1%. Malaysia closed up 0.1%. New Zealand closed down 0.3%. South Korea closed up 0.6%. Singapore closed up 0.4%. Taiwan closed down 0.7%. Thailand closed up 0.2%.

Subscribers Premium Content Area.

For Street Smart Report subscribers only, used to provide additional info to that provided in the newsletter, mid-week reports, and hotlines.

To obtain access please click on the ‘Subscribe’ link. It will take you to an information page on subscribing to Street Smart Report, a subscription to which includes access to the premium content area of this Street Smart Post blog.

In the premium content area this morning: The U.S. market, bonds, and Gold.


*Premium Content*

Please Login or Subscribe to view this content.

Markets This Morning:

European markets are up this morning. The London FTSE is up 0.4%. The German DAX is up 0.6%. France’s CAC is up 0.3%.

Oil is up $.68 a barrel at $86.41.

Gold is up $11 an ounce at $1,714.

This Morning in the U.S. Market:

This week is an average week for potential market-moving economic reports, including some potentially important ones like the Fed’s announcement after its FOMC meeting, Durable Goods Orders, and the first report on 3rd quarter GDP. To see the full list click here, and look at the left side of the page it takes you to.

There were no reports Monday.

Tuesday’s report was that the Richmond Fed’s Mfg Index fell to –7 in October from +4 in September. The Richmond Fed region extends from Maryland to South Carolina and west to most of West Virginia.

Yesterday’s reports were that New Home Sales came in at a 389,000 annualized pace in September, a 5.7% increase over August. But that was only because August sales were revised down to 368,000 from the previously reported 373,000. But the 389,000 beat the consensus forecast for 385,000. The Fed’s FOMC meeting ended with its statement showing no surprises. And the FHFA Home Price Index showed home prices rose 0.7% compared to July, the 7th straight monthly back-to-back increase. That brought the year-over-year increase to 4.7%.

This is what the last 12 years of home price changes looks like in chart form.

 

This morning’s reports are that new weekly unemployment claims fell by 23,000 last week to 369,000, and the 4-week m.a. was up 1,500 to 368,000. And that Durable Goods Orders surged up 9.1% in September after plunging 12.3% in August. And the Chicago Fed’s National Business Index came in at –0.37 in September.

Still to come are Pending Home Sales, and the Kansas Fed Business Index, both of which will be released at 10 a.m.

I have to leave for an important meeting, so do not know what impact the reports will have on our early morning indicators.

But at the moment:

Our Pre-Open Indicators:

Our pre-open indicators are pointing to the Dow being up 70 points or so in the early going.

To read my weekend newspaper column click here: Gold Has Lost Its Glitter Again!

Subscribers to Street Smart Report: There is a hotline from last night and an in-depth U.S. Markets update from yesterday afternoon in your secure area of the Street Smart Report website. There will be an in-depth ‘Gold, Bonds, Dollar, Commodities’ update for you there later today.

I’ll be back with the next regular blog post on Saturday morning, as usual later than the weekday updates, probably around 11:00 a.m.

Non-subscribers: We believe we can help you not only make more profits, but just as importantly avoid losses, and at very reasonable cost!

Our portfolios were up an average of 9.4% last year in a flat year (S&P 500 unchanged for year) when many, if not most, managers and funds were down for the year. We were on Hulbert’s Ten Best Newsletters of the Year list for the 2nd time in 4 years, and #4 Long-Term Market-Timer in Timer Digest’s rankings.

And we are off to a good start this year. And we moved up to #1 Long-Term Market Timer in Timer Digest’s April issue, #2 Gold Timer for last 12 month period in its September issue.

Market, sector, stock, gold, bond, and dollar buy and sell signals, short-sales, long-side and ‘inverse’ etf’s, mutual funds, two portfolios of recommended holdings (one modified buy and hold, and one market-timing). Street Smart Report Online provides an 8-page newsletter every 3 weeks, an in-depth 6 page interim update every Wednesday on our intermediate-term signals and recommended holdings, an in-depth 4-page ‘Gold, Bonds, Dollar’ update every 2 weeks, and special reports and hotline updates as needed. Highly regarded and in our 24th year. As a bonus for a one-year subscription you will also receive my latest book Beat the Market the Easy Way- Proven Seasonal Strategies That Double the Market’s Performance. Click here for subscription information.

This blog appears every Tuesday, Thursday, and Saturday morning!

**** End of Today’s post*****

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here