Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX, $VXX

  • Monday, earnings season starts in earnest

For now traders are playing an oversold bounce. But, if this is a relief move, the later you enter, the worse risk/reward.  So, be selective if you are adding more bounce plays.

Also, look at some areas receiving money before the bounce.  If they hold up in good tests, and if the bounce does not hold and extend they will get more money.  Meaning, gold, other precious metals, select retail stocks

Always  play what the market gives.

If this bounce does not hold, rolls over, tests and bounces again there will be good plays on the big names.  If not, there will be plays on the areas that got money as the big names sold off and we will see more action to the Southside again.

That is what I see in here now.

All of the talking head talk is noise and means nothing.  But, the Fed’s is not a talking head, and owing to its history always over does things.

President Trump’s comments last week have hobbles Chairman Powell somewhat.  The Fed is a market and economy killer, and if that holds, and this move stalls, then I look for a bigger move beginning in November into year’s end.

Pay attention, remember it is your money and your responsibility.

The Bulls Vs The Bears

Investor Sentiment

VIX:  21.31;  -3.67.
VXN:  24.69;  -3.07
VXO:  21.16;  -5.73
Put/Call Ratio (PCR) CBOE):  1.16;  -0.02
The Bulls and The Bears: The Bulls knelt down after a 61.8 peak on this move dropping to the mid-50’s, while the Bears  fell 0.1.

The Bulls are at:  56.3 Vs 61.8 Last

The Bears are at:  18.5 Vs 18.6 Last

 

Support and Resistance

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis for the Week Ended 12 October 2018

Date Symbol Price Technical Analysis Support Resistance
12 October 2018 QQQ 174.32 Bearish (-0.28) 169.68 174.90
12 October 2018 DIA 253.3 Neutral (0.08) 251.60 253.61
12 October 2018 SPY 275.95 Bearish (-0.37) 273.90 279.27

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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