Broken Window Fallacy - Does Hurricane Sandy spur the economy?

Hurricane Sandy - Does it help our economy to rebuild? The Broken window fallacy is a short video explaining how the press spins the Hurricane into a stimulus for the economy. Hurricane Sandy isn't a benefit to the economy, it just keeps the real demand for goods and services tight as income shifts to cover damage. We could see oil initially go down as the east coast was effectively turned off for two days and the markets closed. Gold, or the Panic commodity will also see some price relief as sellers will try and keep profits and the futures market will probably show some price pressure to sell as this is not good for business in the states.

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Day trading - risk off - Dollar strengthens Index falls Bearish pullback

Day trading - risk off - Dollar strengthens Index falls Bearish pullback as Apple kicked off the move down followed by Google as earnings didn't meet expectations.

S&P500 emini futures has settled beneath the point of control. The sellers gained control in the overnight session as there is more pressure to move to the dollar and bonds in the face of Spain's recapitalization and Europe's ongoing financial crisis. Previous to this week the market has been ignoring the news out of Spain and Greece but this morning Spain is again parsing out money to cover banks. The point of control on the S&P500 emini futures is 1418, the sellers took control before the US equities market opened. Our next area of support is 1398 to 1402. This is where we got the break out to or swing highs which were tested three times. We have had two distribution periods since September 11, with the the third distribution leg starting with the Apple AAPL sell off from 1460. This last distribution has moved the market roughly 60 points from the highs to break the support at 1418. Normally, we would look for three days selling pressure, then consolidation before the continuation or reversal. The support is the Psychological number 1400. If investors see the market close down below the 1400 area it could put more pressure on selling and we could see this move to the next target 1384-86 . The emini futures has pushed past the 40 point selling range for a volatile move this past three sessions so we could see it break further to 1365 area for support on the 200MA. [...]

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Buyers are weak in morning trading Sellers exhausting

Day trading  - Buyers are weak in morning trading Sellers exhausting as S&P500 emini futures hitting support as earnings are revealing a weaker business economoy.

The S&P500 emini futures contract hit support this morning at 1424.25 and price has been moving in a consolidated range from 1424 to 1430. A 6 point range on light volume. Support for this session is 1424 with another short term support coming in at 1420. Long term support will be at the next move down to 1415, then 1408 to the psychological support of 1400. Resistance in the Short term is 1430 to 1431 then our next upside target of 1437.25 coming close to the 200MA and the 50MA which if it crosses in this position is known as the golden cross in the short term. Next resistance is 1448 which would give us a a new lower high if it turns. Watch as this pattern gets tighter and if earnings keep coming out with falling sentiment, then we could see this pattern break to 1400 and a probable continuation to 1386. In the long term the market is looking for the next support for a bounce to break through this resistance at 1465-70. Probably into the end of November as we will be looking for a great bonus season for Wall Street. (which is not located on Wall Street by the way). [...]

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Bad Apple takes Nasdaq down

Day trading AAPL watching as Nasdaq heads down as Apple makes up 20% of Nasdaq trading volume. Apple (AAPL) is showing weakness as it heads into the first major support at $626 . Watch for consolidation at this level as price has come to the first major supporting trend line. If price breaks through this level then the next area of support is $582 then an extreme sell off to $520. It looks like we could see some support coming into $5400-60 area as this is the are of consolidation for the breakout from the inverted Head and Shoulders from May of this year.

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Day trading course Bull Market Approaching Highs

Day trading course Bull Market Approaching Highs - The S&P500 emini future is approaching previous swing highs of 1468. The S&P500 has been in a very choppy range moving to new highs with a series of higher lows. The previous support at 1452 held and we broke through the resistance to get above 1460 in the overnight. This is leaving a gap at 1456. Watching for initial resistance at 1467 which was the previous swing high. On a longer term chart we can project the next area of resistance 1472 then 1480 and 1486 with an extreme high at 1503. The Euro is showing strength and the dollar index weakness, a good sign that the market could continue its major trend. Support will be coming in at 1460, 1456 and 1450 in the short term, with 1442 being major support on the 200MA.

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