Market Summary 10-21-08

Oct 21 Market Update

 

In the broad perspective of where the market has been, today’s move was rather benign.  There was a late day sell off on fears of less than stellar earnings from Apple (AAPL) after the bell.  The Nasdaq fell by 4.1% due to this and this morning’s lowered earnings outlook from Texas Instruments.  

 

The other major loser today was the commodity space.  With outlook downgrades out of FCX and CAT combined with a strong dollar move, many of the commodity stocks gave up previous gains.  Gold had the biggest sector decline as bearish sentiment continues to reign in the sector. 

 

After the bell, AAPL lowered revenue guidance which is putting pressure on the futures.  Most stocks are currently range-bound.  I am bullish over the longer term here and have written about many of the bull signs out there, but in the very short term, we must give heed to the ranges and wait for confirmation to enter trades. 

 

For example, let’s look at the SPX, XLE, and CHK…

 

 

 

 

 

 

Wait for confirmation of the upward trading zone or a bounce off of support for nice long entries.  There was some positive movement again in the credit markets as the thaw continues. 

 

Happy Trades,

 

Jeff