Nearing 10,000 Subscribers & October 4th 2011 Market Recap

Quick community news update – I woke up this morning to find the Subscriber ticker at 9,974 subscribers as reported by feedburner! This fluctuates daily as not everyone reads every post but nonetheless we are only 26 from the infamous 10,000 mark. Please subscribe to the feed if you have not done so already and help us reach the goal :)

What a finish… The NASDAQ came within 1 point of fresh session lows then rallied from 2300 to 2405 in a matter of 48 minutes (+4.5%) to close today’s session.

ZeroHedge posts that there was no major news that caused the spike but more so an overdue rebound and further speculation, “Our assumption is that this was simply the bounce that everyone expected as we seemed to have squeezed shorts into lunch and were limping back lower on AAPL disappointment.”

Here is a snapshot of the intraday action from my thinkorswim screen. Pretty impressive,

Volume was massive across the board which suggests atleast a temporary bottom may now be in place. Overall however the damage has been done as all major key support levels have now fallen and any rally will most likely be sold into and thus limiting upside potential. A week or so break from the selling would not be unexpected at this time.

Market analysis:

Trend Table

Trend Nasdaq S&P 500 Russell 2000
Long-Term Down Down Down
Intermediate Down Down Down
Short-term Down Down Down

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

Comments

  1. Posted by CAD on October 4, 2011 at 6:37 pm

    Maybe FT.com rumor regarding EU bank recapitalisation.

  2. Posted by Blain on October 4, 2011 at 6:48 pm

    Yes very possible but these come out frequently so hard to see such a “same story different day” rumor piece could spark a 4.5% move like that. Then again who knows. If that is the case then tomorrow we should retrace our steps pretty quickly!

  3. Posted by Vince on October 6, 2011 at 10:15 am

    thank you mike, good one.

  4. Posted by Blain on October 6, 2011 at 10:39 am

    Mike is no longer with the site actually. I bought the site out in early January. Please read here for more information, http://www.tradermike.net/about-the-site/.