Noon Time Rally is Faded as Stocks Close off The Best Levels of the Session
The market along with the rest of the world awaits the outcome of today’s Presidential Election. Mid-Day stocks enjoyed a nice pop with volume exploding higher, but it would be all for nothing. Friday’s highs would be a big point of resistance for the market and sellers began to take over. At the end of the day the NASDAQ and S&P 500 had closed in the green but well off their best levels. Coinciding with the market rally the VIX or Fear index fell hard as investors rushed back to a “risk on trade.” The Dow Jones Industrial average lead all major market indexes with 133 point gain or up 1.02% gain. Volume was solid for gains, but the lack of ability to close near the best levels put another stain on what would have been considered a solid day. We at Big Wave Trading remain in sell mode and continue to see nothing from the market that would get us to move into buy mode. Perhaps a push above the 50 day for the S&P 500 with volume would change our tune. At this point we simply do not have enough evidence to push higher. Gold and silver along with other commodities jumped along stocks, but commodities as a whole have been beaten up so badly recently the relief rally isn’t unexpected. Two economic figures were released today, but weren’t covered by the media for obvious reasons. Coverage for most of the day was regarding the election and possible outcomes. No one person or anyone knows the future and it is entertaining to see folks continue to predict what will or won’t happen. Both economic figures were disappointing with the JOLTs Job Openings lower than expected and the ISM New York index show a contraction with a reading of 45.9. Prior reading for the ISM New York was 52.9 and when you layer on top Hurricane Sandy things will likely be worse in the coming weeks/months. At 5pm East Coast time we’ll begin to see exit polls and there will be no doubt bets made on InTrade who will win the election. Polls will close staring at 6pm and throughout the night. Let the fun begin!