DAILY STOCK MARKET REPORTS - September 2005
Sept. 23, 2005
On Thursday the buying came in just as the Dow hit the same low that it hit in late August. However, the stochastics indicate another two or three days of
nondirectional trading. The strong stocks are in obvious bullish sectors. The heavy construction companies are doing well.
The short positions are performing well also. Continue to hold a mixture of long and short positions until the market direction can be identified. That will probably
be a few days after the hurricane.
Sept. 22, 2005
There will no reason for buyers to step into this market until the hurricane path is known. Continue to stay relatively short. The long positions should be held only if they have shown good strength in the past few days. Crude Oil prices are still heading higher.
Sept. 21, 2005
Hurricane Rita is the main factor. The Texas refinery area is the target. That is going to be the fear factor for the next couple of days. Tuesday, the feds raising the interest rates was not well accepted. Currently, the markets do not show any reason for buyers to want to step in. Crude Oil prices are up farther today.
Add some short positions and close out long positions that did not show strength on Tuesday.
Sept. 20, 2005
The hurricane in the Gulf dramatically moved oil prices on Monday. The fear of damage to additional oil rigs shot oil prices up over four dollars Monday. This equated to weakness in the equity markets. The Bearish Engulfing signal that formed in the Dow indicates more weakness. Anticipate the market moving sideways to slightly down for the next few days until the hurricane results are tabulated.
Sept. 19, 2005
The strength in the indexes on Friday revealed that the moving averages were acting as support. Additional strength today would be further confirmation that the Dow will test the 10,700 level once again. If so, expect a breach of that level which would mean that the uptrend would persist.
Conversely, weakness over those next few days would be more of an indication that the markets were going to be trading flat for the next few weeks. Crude Oil prices closed below the 50 day moving average on Friday. Further weakness could make the next target the 200 day moving average. The significant weakness in Crude Oil over the next few weeks should add strength to the stock market.
Sept. 16, 2005
Thursday was somewhat of an indecisive trading day. The Dow formed a doji/Spinning Top right on the 200 day moving average.
The NASDAQ showed a slightly weak day. The strength of the futures this morning indicate enough buying to tell us that the sellers have not come in yet to control this market.
Crude Oil prices appear to be weak this morning, coming back down toward the 50 day moving average. A breach of the moving average a second time would indicate that the 200 day moving average might be the next target.
Continue to hold the majority of long the positions with a few short positions in the portfolio.
The Evening Sta