Weekend Wrap Up

Another great week as we caught plenty of trades and banked some nice coin. Congratulations to our software subscribers on an excellent week as well. Our inbox has been flooded with emails showcasing your winning trades and thoughts of gratitude. Thank you for all your kind words as we are here to share our success with you. We truly want to take our traders to the next level of their trading and we are humbled by your success with our software. We have spent many years and a lot of money developing our product. Our direct Wall Street experience is what separates us from the rest of the pack and we try to show example after example as we stay busy consulting our institutional clients, funds and money managers. Regardless, if you are not part of the Rampage Trading team, we hope you are experiencing the financial success we are and improving upon your trading P&L week after week. This market has given so many opportunities to catch some enormous profits and we hope you are.

Next week looks to be quite volatile and our chart is still on a buy and every dip should be bought unless we break the SPY 117.75 level. U.S. stocks ended on a flat note on Friday, wrapping up another strong month driven by expectations the Federal Reserve will flood the economy with cash next week. Investors kept trading to a minimum this week in anticipation of next Wednesday's announcement. Activity the last several weeks has been heavily influenced by hopes for a large round of asset buying. Investors are betting on volatility to rise after Wednesday's announcement and have been hedging against unexpected outcomes from the Fed meeting, as well as Tuesday's midterm elections. The CBOE Volatility Index (VIX) climbed about 13 percent this week, even as stocks rose marginally. The Dow Jones industrial average added 4.54 points, to 11,118. The Standard & Poor's 500 Index shed just 0.52 of a point, to 1,183. The Nasdaq Composite Index edged up just 0.04 point, percent, to 2,507.

Consolidation

Stocks struggled to a mixed finish Thursday after weak earnings news weighed on the market. The Dow Jones industrial average lost 12 points, but broader indexes posted slight gains. The market had risen steadily in the opening moments of trading following a surprise drop in first-time claims for unemployment benefits, pushing the Dow up as high as 53. The Standard & Poor's 500 index rose 1 point to 1,183, while the Nasdaq composite rose 4, to 2,507. Not even a falling dollar could provide support for the market. Stocks and commodities have been very sensitive to the movement of the dollar in recent weeks. A decline in the dollar makes riskier assets priced in the currency, such as gold, oil and domestic stocks, more attractive to investors. Our charts are still showing strength and we just keep moving up our stops across the board in order to lock in our profits.

Still Long

U.S. stocks fell on Wednesday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy. In recent sessions, investors reduced their bets on the size and timetable of the Fed's potential purchases of Treasury debt. The Wall Street Journal furthered those expectations after reporting the Fed hoped to avoid a shock and awe approach. The Dow Jones industrial average dropped 43.18 points, to 11,126. The Standard & Poor's 500 Index lost 3.19 points, to 1,182. But the Nasdaq Composite Index gained 5.97 points, to 2,503. Even with the recent intraday weakness, our charts have not wavered and we remain long.

Groundhog Day?

Mixed earnings reports and a stronger dollar helped stocks finish about where they started Tuesday. The Dow Jones industrial average wavered within a 100-point range as traders attempted to parse the direction of the economy amid a drop in home prices, a batch of weak earnings reports and a slight rise in consumer confidence. The Dow Jones industrial average rose 5 points, or 0.1 percent, to 11,169. The Standard & Poor's 500 index rose 0.02 to 1,185, while the technology-focused Nasdaq composite index rose 6, or 0.3 percent, to 2,497. Traders were moving out of riskier assets as the dollar strengthened. A stronger dollar makes stocks and commodities more expensive because they are priced in dollars. The dollar rose against Japan's yen and the euro Tuesday. Not to sound like a broken record but early morning weakness dipped right into our chart support levels on the SPY which meant our subscribers were buying this dip. We can't tell you how often this happens on our charts and how much money can be made by utilizing these support and resistance levels on all charts and on all time frames. No weakness was incurred and the uptrend is still intact.

Closing Bell

Stocks rose modestly on Monday on growing expectations that the Federal Reserve will take steps to boost the economy. A falling dollar that contributed to a jump in commodity prices also helped push the Dow Jones industrial average up 31 points to its highest close since late April. Traders are widely expecting the Fed to expand its program to buy bonds as a way to stimulate the economy. That would push bond yields down and, in turn, would make stocks a more attractive investment. For the second time in the past week, the Dow eclipsed its highest closing level this year only to quickly pullback. It closed at 11,205 on April 26. The average rose 31, or 0.3 percent, to 11,164. The broader Standard and Poor's 500 index rose 2.5, or 0.2 percent, to 1,185, while the technology-focused Nasdaq composite index rose 11.4, or 0.5 percent, to 2,490. All in all, a solid day as the uptrend continues. We have moved our stops up across the board as we expect this next week to be quite volatile.

Closing Bell

The Dow Jones industrial average rose for a third straight week, capping a two-month period in which the index has ended 7 out of 8 weeks higher than where it started. Stocks ended on a mixed note Friday at the close of a busy week of earnings news. The Dow finished slightly down, while the broader Standard and Poor's 500 index and the technology-focused Nasdaq both ended with gains. The dollar rose slightly against other major currencies, but still remains near a 15-year low against Japan's yen. It's also near its lowest level of the year against the euro. The yield on the 10-year Treasury note rose slightly to 2.57 percent from 2.54 percent late Thursday. Bond yields move in the opposite direction of prices. The market continues to respond to the US dollar, and as it declines then stocks and commodities rise, and vice versa. That inverse relationship continues to be the trading catalyst. However, the market has been vertical since QE1 as the US dollar is devalued, which all means inflated asset prices, which we obviously have in stocks and commodities.

Uptrend Still Intact

After a nice pop in the morning followed by a mild selloff mid-afternoon, the indices closed the day with gains. Bears really can't get excited here as we have not breached any levels of support. See our attached chart. It was another great day and we are looking to close this week with record gains. As mentioned on our website, we will be leasing our software program to a few more retail traders and once we fill these expanded slots, our time will be very limited as our focus will shift to the demand of our institutional clients. If you are interested, take a look at our website www.rampagetrading.com

Yawn... + 7 ES Points

Just another day, another dollar. Today was a daytraders delight. Attached you will find one of many charts that nailed it...again. This one was good for about + 7 ES points.

Easy Breezy

For those of you who caught our last post in which we described our support level to a tee (SPY 116.75), it was safe to assume that we were big buyers around the lows yesterday using our SPY price level as a stop. We are now being rewarded VERY handsomely. If you were trying to swing trade short yesterday, we hope you kept your stops tight as we are zooming higher today. We are moving our stops up as we speak (long positions) and we will lock in nice profits should the market turn back down. Again and again, our charts did now waver from yesterday's weakness and we executed our plan perfectly. This is how you remain in this game. Plan your trade, trade your plan. It's really that easy. And it doesn't hurt that your software allows you to play with the big boys. Congratulations to our subscribers.

Coincidence?

Stepping back and reviewing the bigger picture, our attached SPY chart has been long from around 110. Only a close below the 115.75 level would put this uptrend in jeopardy. Did you notice the low on the SPY today? It was around 116. That was a hair away from our 115.75 level. Coincidence? As mentioned, our software was designed by some of the best institutional traders out there, so a test of that level is not surprising to us as we know the big players are watching this number as key support. Today was a great day with plenty of volatility and money making opportunities on our day trading and swing trading charts.

Closing Bell

A stronger dollar and a surprise interest rate hike in China helped push stocks sharply lower Tuesday. The Dow Jones industrial average fell below 11,000 for the first time in a little more than a week. It was the largest drop the stock market since early August. Disappointing news from Apple and IBM pushed the technology-heavy Nasdaq down about 2 percent. The dollar rose 1.7 percent against a basket of currencies, while gold fell 2 percent. For weeks, traders have been anticipating that the Federal Reserve will expand a program to buy bonds in hopes of encouraging spending. That has led many investors to buy stocks despite questions about the strength of the economic recovery.

Busy Day - Easy Money

It was a very busy day for us as we were initiating a lot of positions and working with some of our institutional clients. We have attached a chart of the ES that banked over 10 plus points. Congratulations to our subscribers who caught this move. Our charts just keep printing profitable trade signals. It doesn't matter if you are a day trader or swing trader or even a position trader, our charts have been nothing short of amazing.

AAPL

A few of our subscribers have wrote in inquiring about AAPL. Many of you are still long based on our charts and we recommend taking profits here. AAPL reports earnings after the close today and if you took this trade from the buy signal issued at $285, you are now up over 30 + points so please don't look a gift horse in the mouth. Take your money and move on to the next trade. We did. If AAPL has a blowout earnings report, so be it. You have banked some nice coin and there's plenty of other opportunities out there. Keep scouring your swing trade charts as they have been printing money lately. Once again, this was an easy trade and congratulations to those who caught it with our swing trade chart entry price.

So Far So Good + 5 ES

Another nice pop off the open. Locking in + 5 ES points.

Great Week!

Stocks across the board initially rose after Federal Reserve Chairman Ben Bernanke reiterated that the central bank is ready to do more to stimulate the economy. Bernanke's comments were the latest confirmation the central bank is about to step up its purchase of Treasury bonds to spark growth. But that burst of optimism couldn't fully overcome worries about how banks like Bank of America and JPMorgan Chase handled the foreclosure process on mortgages. Both banks, along with General Electric were the primary culprits in sending the Dow Jones Industrial Average down more than 30 points. The tech-focused Nasdaq composite index rose more than 1 percent with a boost from Google's 11 percent gain. No damage has been done to our attached SPY chart and the bulls still remain in control. This week was filled with plenty of excellent trades and our charts just keep printing profitable signals. But what would you expect considering our software was developed by some of the best quants and institutional traders out there. Don't come to the dance if you can't play their game is what we always say. Congratulations to our subscribers for a great week. Enjoy your weekend.

Nailed It! + 7 ES Points

Congratulations go out to our subscribers who caught this + 7 point ES move today. It doesn't get any easier than this. We have tightened up our stops across the board on all our other positions and are looking forward to a great weekend.

Patience

There's a saying that all good things come to those who wait. Today's little pullback did nothing but suck in a few more bears. You can't fool our charts. If you haven't heard, the POMO schedule was released yesterday and it's a doozy. Plenty of action over the next few weeks. Does this mean we can't go down? Of course not, but why risk your hard earned money when the trend is still clearly up. Don't be fooled by any bearish talk and fancy charts with many wiggles and lines. Keep it simple and look at the big picture. Our inbox was flooded today with emails from our subscribers showcasing their trades. Great job and congratulations to all! We are keeping very busy with our larger clients (institutional funds) so we apologize for the lack of posts but hopefully, you get the gist. Trading should be simple and great opportunities present themselves every day. Set your stops accordingly and let's keep the Rampage money machine rolling.

FXE

Our FXE long caught fire and we are moving our stop up to 140 allowing us to lock in a gain of 2 points.

Groundhog Day

It feels like we are repeating ourselves over and over again. The market put in a solid rally today. Better-than-expected earnings reports from corporate bellwethers helped push stocks to their fourth day of gains on Wednesday. However, Intel Corp. and JP Morgan Chase both fell by more than a percent despite announcing double-digit gains in profits. The Dow is up 2.9 percent in October, and closed Wednesday at its highest level since May 3. The Dow has been up for 22 of the 31 trading days since the end of August. Does the SPY chart below look bearish? Why fight the trend? Our team and our subscribers have made a great deal of money lately and we will continue to do so by following our charts and placing our stops accordingly. Are we saying this to pat ourselves on the back and tell you our software is superior to any methodology out there? No. We are merely saying, no matter what approach you use to trade the markets, we really hope you caught a large part of this move and banked some nice coin. If not, we really urge you to rethink your strategy as the market has presented some unbelievable money making opportunities. As far as predictions of a market top go (which we hear everyday now), eventually someone will be right. But we will be ready to ring the register as our trailing stops will be profitably hit and we will move on to the next profitable trade.

That's all we have to say about that.

Good Times

As this market powers higher, we are long and strong. That being said, we are moving up our stops across the board. Here's a nice chart of the ES from this morning. We hope you caught a few points because that was easy.

Worth Watching

The following stocks are poised to move higher. Entry price wil be critical. We recommend using your swing charts as stated in the Rampage Trading Manual. ASYS, RNOW, CCME, ATPG.

Not Yet

Mr. Market decided it wanted to suck in a few more bears as overnight weakness created a buying opportunity this morning. Stocks ended higher after minutes released from the latest meeting of the Federal Reserve showed that the central bank is ready to stimulate the economy. The Fed said that it was concerned that inflation was too low and that it would most likely keep its promise to buy bonds to encourage borrowing. This rally has been powerful and the U.S. dollar has continued to decline as the Fed and other central banks have inflated asset prices because of the Quantitative Easing programs started in July. However, we do not trade what we think and as professional traders, we trade what our charts tell us. Attached you will find a chart of the SPY. Again, if you have been on the right side, you have made a lot of money and for that, we congratulate you for sticking to your plan. This is what we do. As we have stated before, we are not worried about trying to call the top as there will be plenty of time to jump on the reversal.

ES BANK

This was sent in from one of our subscribers. Locked in 5 ES points and is now on cruise control. Congratulations!

Quiet

Yesterday was a quiet day but that didn't stop us and our subscribers from banking some nice coin. See our charts below. Even on a slow day, you'll always find something moving (long or short). The market is hovering near multi-month highs. Many of the sectors we follow are in strong uptrend's. We did take a few shorts yesterday and we will post those soon.

Taking Profits

Taking off 1/2 position on WYNN. Locking in + 7 points. Moving stop to 94. This one was too easy.

Easy Money

We're taking off 1/2 our position on AAPL and moving our stop to 292. Locking in +10 points. Nothing more to say. Chart nailed it.

Worth Watching

The following stocks are poised to move higher. Entry price wil be critical. We recommend using your swing charts as stated in the Rampage Trading Manual. VHC, RES, ISLN, CPX, BONT.

Morning Commentary

Stock futures are up this morning as expectations are running high that the Fed will take further action to bolster the economic recovery. The dollar is trading down. The dollar and equities have been inversely correlated as investors leave the perceived safety of the greenback and put money into stocks. Bond markets and federal offices are shut in the U.S. Monday for the Columbus Day holiday. No economic data are due for release. Investors will be looking ahead to key earnings this week. Tuesday kicks off with chip maker Intel, Wednesday features JP Morgan, Google reports Thursday and General Electric will announce results Friday.

Fantastic Week

Wow, what a great week. We caught some great moves both long and short. We would also like to congratulate our subscribers as many of them have been commenting and writing in to us detailing their trades. Great job everyone. The concept of this game is simple - keep your losers small and let your winners run. Please review our posts from this last week as an illustration. Our software was designed to give traders a high probability method to position themselves on the right side of the market. It will tell you precisely where the balance of buyers and sellers begins to shift and a change of direction becomes imminent. We almost exclusively work with hedge funds, money managers and other institutions but over the past few months (time permitting) we have been working with a few retail traders and we can honestly say, it's been a pleasure. We are happy to share our talents and are humbled by the success of others. We have been really busy managing portfolios and consulting with our clients but we hope you have enjoyed our posts and we try to stay as active as we can. Unfortunately, we only have so much time in one day so we can't post all the time. As to the markets, we constantly hear people trying to call a top. Does this attached chart of the SPY scream SELL? Our charts have been on a buy for some time now and when a reversal triggers, we'll have plenty of time to get in and catch it. Have a great weekend. www.rampagetrading.com

Closing Bell

The Dow closed above 11,000 today for the first time in five months as hopes built that the Fed will take more action to get the economy going again. A weaker jobs report added additional expectations that the Fed will announce new steps to encourage borrowing when it meets in early November. The assumption is that if the Fed keeps lowering rates then this will drive investors into riskier assets like stocks or into currencies in countries with more attractive interest rates.

Picture Perfect

When we hear people say that this market is only good for daytrading, we have to respectfully disagree. There have been a plethora of swing trade and position trade opportunities everywhere this past year. Attached you will find a recent swing trade chart of FXE. This was an easy trade for us and for our clients. The point is, if you feel your account isn't gaining any ground or you are being whipsawed and your commissions are eating you alive, please rethink your strategy for this market. We can show you chart after chart of great trades that flow with the natural rhythm of price action. This market provides great setups day in and day out in any time frame so be sure to adapt.

GLD

Perfect looking pullback in GLD as a few of our fund manager clients used the opportunity to buy the dip. Congratulations!

Volatility

The jobs report was released this morning and the economy lost 95,000 Jobs in October which was worse than expected and the unemployment rate held at 9.6%. We are seeing some wild swings in the ES pre-market. If you are daytrading this morning, please use our recommended time frames located in your trading manual. Metals and mining sold off hard yesterday but so far it looks like a pullback. Ideally, we would like to see some follow through in the overall market.

Worth Watching

The following stocks are poised to move higher. Entry price wil be critical. We recommend using your swing charts as stated in the Rampage Trading Manual. DCTH, ITMN.

Another Day...Another Dollar

What a great day. We caught some fantastic moves long and short. As you can see from the attached SPY chart, no technical damage has been done to the bull case. The jobs report due out tomorrow morning should hold some more clues for near term direction. Stay tuned.

SPY Update

We have moved our SPY stop to 115.75. This represents a guaranteed gain of + .40. We initiated quite a large position via spreads/puts and outright prurchases so this is a big reward. Congratulations to those who also caught this move. We will leave our stop as is and watch the market going into the close.

SPY Update

We nailed the entry price on our SPY short at 116.15. This position has moved in our favor and we are now placing our stop at breakeven. This is now a free trade and we will let it run and move our stops accordingly.

SPY

For our aggressive traders, SPY has printed a sell signal on our 15 and 30 minute charts. Check your charts and enter accordingly.

Stagnant

We caught a great ES move short this open. +5. The market is coasting here and the buy on dip mentality will prevail until it doesn't. 116 on the SPY is a magnet and we might get stretched a little in both directions. Tech starting to catch a small bid.

Closing Bell

Bulls needed a healthy consolidation today and got it. The Dow Jones industrial average rose 23 points, closing at its highest level since early May. Broader indexes fell. The Standard & Poor's 500 fell 1, to 1,160, while the Nasdaq composite index fell 19, to 2,380.The Euro moved above $1.39 Wednesday for the first time since February, while the yen struck a 15-year high. Today, yields on two-year and five-year Treasuries sank to record lows, and the yield on the 10-year note fell to its lowest level in 2010. All eyes will be on Friday's job report. It's a tricky situation, a bad jobs report will increase the odds that the Fed will be more aggressive. We can only trade what we see and not what we believe. Right now, our chart is still on a buy and any dips will be bought.

AAPL

Stopped out of our AAPL position at breakeven. The rapid selloff this morning was very welcome and some of our traders asked why we placed our stop so tight. Strict money management and rule based trading is the key to this game. Our charts are deadly accurate and do a fantastic job at getting you in and out of winning trades but if you don't have a plan for each trade, this game can become costly. In this example, we stuck to our plan, added a few more shorts as the charts still showed weakness and when our trade showed a profit of over 2 points this morning, we moved our stop to breakeven in order to protect our capital and let the trade run. No matter what happened from that point, we had a free trade. Congratulations to everyone as we are receiving plenty of comments from great trades taken this morning. If you are interested in leasing our charts, please visit www.rampagetrading.com

AAPL

Per our previous post, we stuck with our charts and we are now in a winning trade. We are moving our stop to breakeven on AAPL at 288.

AAPL

We are adding to our AAPL short at 291.75. Our blended average is now 288.

Worth Watching

The following stocks are poised to move higher. Entry price wil be critical. We recommend using your swing charts. REE, HAWK, REDF, NEP.

Trades

Yesterday, we mentioned a few plays we took at the open. Here are the results.

OCLR +4.34%
CPX +1.65%
GBX +4.39%

Granted, the market was trending higher and usually that will lift all boats but take a look at the percentage returns here. We will try to keep everybody updated as best we can but we get extremely busy managing portfolios.

Rally

As you can see from our chart, this rally is showing no signs of weakness. We broke through SPX resistance levels of 1150 and 1160. What do we do now? 1170 looks to be the next stop but we just trade what we see and not what we think. The play for now is still to the long side. Any close below 114.50 would change our mind. There has been a lot of great trades out there and our members have caught them with ease. Good trading today.

Closing Bell

U.S. stocks rallied on Tuesday, with the Dow closing 50 points shy of 11k. In our opinion it looks like the search for yield is flowing into equities (for now). The Dow was lifted by all but one component. The COMP added 55 points to 2,400.
For every stock falling, almost five rose on the New York Stock Exchange, where more than 1.2 billion shares traded. Commodities also rallied, with crude-oil futures closing at a five-month high, rising $1.35. Gold futures ended at yet another record high of $1,340 an ounce.

Watching ES for a break.

Price has coiled at the top of its trading range for today. Expect a powerful move out of this pattern. For our software users, we recommend switching over to a tick chart to catch this next move.

GLD

A picture is worth a thousand words. A few of our clients caught this one. Great job!

FXE

FXE (currency shares Euro Trust) keeps powering ahead.

AAPL

Despite the strength in AAPL today, our charts are still on a sell signal and the trend algorithm is showing weakness. We remain short with a blended average of 283.75.

ES Trade

We exited with a 1 point gain on the ES. Market going into lunchtime sleep mode. We'll see what the last hour brings. SPX is consolidating around its highs and is safely above 1150. Buy programs are kicking in on each dip or pullback.

ES Trade

Moving stop to 1153.50. Locking in +1 Point.

ES Trade

Moving stop to 1154 now. Locking in +.50.

Short ES Daytrade

Short ES @ 1154.50. Stop @ 1156.50.

Mr. Market

As the ES broke through it's first overhead resistance of 1145, all eyes were on the next target of 1150. If the ES can hold above this level (1150) as of the close today, higher prices are warranted. More specifically, we will be looking for the 1170 area as the next target. If price cannot close above 1150, we will look for an attractive opportunity to short based on our shorter term time frame charts.

SPY

Our attached chart shows continued strength in the SPY. For those with our charts, congratulations on the 30 minute long signal. Protect your stops and profits at this point.

PROFIT!!!

Took profits on the long dollar trade. We'll also be watching this closely over the next few days for a possible long swing trade.

Dollar trade

Moving stop up to 78.20 to lock in profits.

Dollar trade

Moving stop to BE now.

Long Dollar

Long dollar futures at 78.13

AAPL

Shorted more AAPL at 285. Blended average around 283.75.

AAPL

We are short AAPL from 282.45. We will look to add to our position around 285. This is a swing trade.

Watching the following.

The following stocks are poised to rocket higher. Entry price wil be critical. We'll be watching closely. OCLR, XRTX, CPX, GBX

AAPL

We will be looking to sell short AAPL on the open as this gap up has provided a good entry point.

Strength

As mentioned yesterday, no technical damage was done by the bears. Our charts held steady and didn't flinch. Futures are strong pre-market and it looks like we may resume our uptrend today so we'll be watching our 30 minute and 60 minute charts for fresh signals.

ES intraday + 7 points

One of our retail subscribers sent us his ES intraday chart showing a captured move of + 7 ES points. Congratulations!

AAPL

For those of you leasing our software, congratulations on catching the sell signal on AAPL around $280. You are currently in the money by about 1 point. We did not initiate a short position as we would like price to pullback to the $281 area for an ideal "Rampage" setup. We will be watching this closely over the next day or so.

Closing ES position

Unfortunately, for the bears, we were not able to close below the SPY 113.50 level. This level, provided support througout the day. We have closed our short position on the ES at 1134.50 resulting in a small loss (3 points). Our intraday trade more than made up for this and we will be watching closely to see if this level can break in the next few days (causing a short term trend reversal) or if this was a healthy pullback in strong uptrending market. As you can see from the attached chart, no technical damage was done today by the bears.

Short ES

We have initiated a short position on the ES around 1131.50. This is based on our swing trade charts. We have placed our stop at 1136.

Great Trade!!!

Perfectly executed. Locked in gains on SPY. Watch the 113.50 level to break before initiating additional short positions.

Protect profits.

Moving stop on SPY to 113.80. Locking in more profits!!!

Locking In Gains!

Whether you bought straight puts or initiated a credit spread, you are now in the money. Moving SPY stop to 114 and locking in gains.

A little weakness

Our SPY 30 minute chart is starting to show some weakness but our higher timeframes are still on a buy. As mentioned in our earlier post, keep an eye on SPY 113.50 as the level to break before a short term trend change develops. For the aggressive traders, sell short SPY here (114.25) with a stop above 114.65.

"Get Ready"

Futures are a little soft but off of their worst levels. The SPX is not too far from multi-month highs. Bulls will be looking for a break out above 1150. Bears would like to see a close below 1135. The beauty of this market is that we have caught some unbelievable trends both long and short. Volatility is picking up so keep your powder dry. Many sectors are currently at or near new highs. Please check back as we'll be posting some new ideas throughout the day.

Still Showing Strength

The market shook off early weakness and held a steady bid on the buy side throughout the rest of the day. Watch for SPY 113.50 on the downside. A break below this level and we may see some overdue selling creep into the market.

Reality?

The SPX was up almost 9% in September, which makes it the best September in over 70 years. The SPX was up almost 11% for Q3, yet the institutional equity volume was down around 40% on the major trading desks. The buzz around the "Street" is that the market was accelerated with the help of the PPT as the Fed bought Treasuries from the banks, and the banks would then deploy cash into the market and rapidly accelerate the futures/buy programs, because it would trigger the algorithms. The amount (roughly) was about $5 billion per day when it was active. This does make a lot of sense since the big players (institutions) were not very active in the market as evidenced by the major brokerage firms significant drop off in volume. Most all of the gains were at the opening and the last hour or so. The market is very overbought here and the decline in the US Dollar has helped the markets gains. Any reversal in the dollar will be a catalyst for the pullback during October. Watch the dollar closely.