Trade Connexxions

Markets to Open Up Today

2009-12-14T08:07:00.001-05:00

Futures and the DAX are positive this morning suggesting an up open. The market condition scans are showing a slightly positive bias, but the market bias indicators are neutral. The Canadian market closed slightly down on Friday along with the Nasdaq. In general, the markets tend to be positive prior to the Christmas holiday, and may sell off in January. Gold is up today along with silver but oil is down. Natural gas is up due to the severe winter weather hitting parts of Canada.

The Royal Bank sees Canadian GDP rising 2.6% next year.

Index	Change	% Change	Level	Phase
TSX	-40.64	-0.35%	11423.93	Bullish
DOW	+65.67	+0.63%	10471.50	Bullish
SP500	+4.06	+0.37%	1106.41	Bullish
Nasdaq	-0.55	-0.03%	2190.31	Bullish
Russell 2000	+4.99	+0.84%	600.37	Bullish
NYSE	+20.62	+0.29%	7125.12	Bullish

Markets to Open Mildly Up

2009-12-11T09:02:00.000-05:00

Futures this morning are positive along with a slightly positive bias in the scans suggesting a positive market open. The pattern recently has been for pro institutional traders to take profits on Friday's so watch for this at the end of the day. The market bias indicators are showing no directional bias for today.

Index	Change	% Change	Level	Phase
TSX	+85.35	+0.75%	11464.57	Bullish
DOW	+68.78	+0.67%	10405.83	Bullish
SP500	+6.40	+0.58%	1102.35	Bullish
Nasdaq	+7.13	+0.33%	2190.86	Bullish
Russell 2000	-2.65	-0.44%	595.38	Bullish
NYSE	+36.88	+0.52%	7104.50	Bullish

Trading Range Market Continues

2009-12-09T09:14:00.000-05:00

The markets continue to oscillate back and forth with no strong directional pull. This is typical trading range market action. The futures are positive this morning and the DAX is slightly negative, indicating a mild up open. The market bias indicators are slightly negative and the market condition scans are neutral with no strong directional bias.

Index	Change	%Change	Level	Phase
TSX	-120.70	-1.05%	11386.93	Bullish
DJIA	-104.14	-1.00%	10285.97	Bullish
Nasdaq	-16.62	-0.76%	2172.99	Bullish
SP 500	-11.31	-1.03%	1091.94	Bullish
Russell 2000	-5.86	-0.97%	597.70	Bullish
NYSE	-99.47	-1.39%	7056.26	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

December Likely to be a Choppy Month for the Stock Markets

2009-12-08T08:57:00.000-05:00

This morning, futures are pointing to a down open and the market bias indicators are neutral. The market condition scans still indicated a trading range market, with no strong bias in either direction. In such a market, trend following indicators such as moving averages, RSI, ADX, do not work that well. In this type of market, oscillators give better confirming signals. Also, because stocks can move rapidly up and then collapse, it is important to identify and take profits.

In terms of market news, the Bank of Canada will be making its interest rate decision this morning. Japan has announced another stimulus package and German industrial production is down 1.8% in October. Canadian housing starts were up last month. November passenger car sales hit a record high in China.

Bank of Nova Scotia (BNS.to) missed estimates on earnings, so we may see the Canadian financials suffer today. Gold and silver are pulling back but remain above their 50 week moving averages. These commodities may have one more speculative run.

Index	Change	%Change	Level	Phase
TSX				Bullish
DJIA	+1.21	+0.01%	10390.11	Bullish
Nasdaq	-4.74	-0.22%	2189.61	Bullish
SP 500	-2.73	-0.25%	1103.25	Bullish
Russell 2000	+0.77	+0.13%	603.56	Bullish
NYSE	-26.98	-0.38%	7155.73	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Futures Pointing to a Down Open

2009-12-07T09:12:00.000-05:00

Futures are pointing to a down open this morning. The market bias indicators are showing a bearish bias, suggesting a down day either today or in the next one to five days. The markets remain in a sideways trend with low energy. Seasonally many investors often anticipate a "Santa Claus" rally at this time. However, the markets have not been following seasonal patterns so far this year. Global economic news still have an impact on the markets as well. I have written some addiitional posts at the following link: http://yovia.com/blogs/financialsense/ regarding the Dubai Debt as well as some comments on how retail stocks may perform this year. You may find this of interest.

The current market condition is very frustrating from both a swing and position trading perspective. This is because the fundamentals are still weak and follow through on momentum price action is not consistent. Good entry requires anticipating where a stock may go on "pre-buy" candlestick type signals. Candlestick charts are helpful in getting a better read on the market sentiment for a stock, but takes considerable practice and review of a stock's chart to understand how the stock reacts to a particular candlestick pattern or signal. This is where having a watchlist of stocks you follow comes in handy.

The better you understand how a stock moves the more efficient you will be in identifying buy or sell signals. This is a useful skill for short term trading. The challenge for many people is trying to decide which stocks to select for a watch list. The stocks you choose will be dependent on your risk tolerance and how often you wish to trade, as well as your capital base. As a starting point, you could build a watch list using the components of a popular index such as the Nasdaq 100 or the SP/TSX 60 for the Canadian market. Once you have determined your criteria, you can than scan these for potential investment or trading opportunities.

Index	Change	%Change	Level	Phase
TSX	-125.75	-1.08%	11510.80	Bullish
DJIA	+22.75	+0.22%	10388.90	Bullish
Nasdaq	+21.21	+0.98%	2194.35	Bullish
SP 500	+6.06	+0.55%	1105.98	Bullish
Russell 2000	+14.01	+2.38%	602.79	Warning
NYSE	+25.66	+0.36%	7182.71	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Markets Closed in the US for Thanksgiving

2009-11-26T08:57:00.002-05:00

The US markets are closed for the Thanksgiving holiday. Futures and the DAX are negative, indicating a down open. The US dollar has been declining further, causing the Canadian dollar and TSX to rise. This morning we are seeing a pullback.

This is "Black Friday" in the US, which is considered one of the most important shopping days for the US. Most retailers are engaging in deep discounting to encourage shoppers.

Markets to Open Flat, Volumes Low

2009-11-25T09:05:00.000-05:00

Thursday is the US Thanksgiving Holiday, so Happy Thanksgiving to any of our US readers!. Since the markets have run up prior to the holiday, it would not be unexpected for them to sell-off after. Therefore, it may be prudent to close out any open positions and be prepared to enjoy the weekend.

Futures this morning are positive along with the DAX, indicating a positive open. The market condition scans are showing a slight bias to the upside and the market bias indicators are not showing any strong directional bias. Therefore, this suggests a choppy market again, with weak follow through.

Earnings this morning are also mixed, so no strong catalyst for upward momentum here either.

The markets continue to react the falling US Dollar, which has been moving exactly opposite to the TSX.

Index	Change	%Change	Level	Phase
TSX	-84.39	-0.73%	11539.63	Bullish
DJIA	-17.24	-0.16%	10433.71	Bullish
Nasdaq	-6.83	-0.31%	2169.18	Bullish
SP 500	-0.59	-0.05%	1105.65	Bullish
Russell 2000	-2.23	-0.37%	592.58	Warning
NYSE	-16.07	-0.22%	7170.26	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Canadian Banks Reporting Earnings

2009-11-24T09:06:00.000-05:00

The Canadian Banks are reporting earnings and the stocks have been moving up in anticipation. Bank of Montreal (BMO.TO, BMO), reported 4th quarter earnings this morning and have beat market expectations. Since the March 2008 lows, this stock has had one of the best returns, as it was beaten down on speculation that its dividend would be cut. Pre-market, price is unchanged. Provisions for credit losses are still rising. BMO has also bought the "Diners Club" operations from CITIBANK (C). The remaining banks will report later in the week. Interestingly, there were some large block trades towards the end of the day on BMO. You can sometimes find this information at the TSX exchange site (www.TMX.com)

In US Company earnings, Hewlett Packard (HP) has met expectations for the 4th quarter and has raised guidance for 2010. Also US GDP rose 2.8% in the 3rd quarter, matching expectations.

Futures this morning are mixed and the DAX is essentially flat, indicating a flat open. The market bias indicators are showing a very mild downside bias and the market conditions scans are showing a slightly bullish stance, but neither is showing strong directional bias that is reliable. This, along with the short week, suggests speculative price action. The Canadian markets continue to be supported by the speculative demand for commodities and financial services.

Index	Change	%Change	Level	Phase
TSX	+44.69	+0.39%	11624.02	Bullish
DJIA	+132.79	+1.29%	10450.95	Bullish
Nasdaq	+29.97	+1.40%	2176.01	Bullish
SP 500	+14.86	+1.36%	1106.24	Bullish
Russell 2000	+10.13	+1.73%	594.81	Warning
NYSE	+101.86	+1.44%	7186.33	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Choppy Sideways Action Continues

2009-11-23T08:37:00.000-05:00

This is a short week due to the Thanksgiving weekend in the United States. As such, volumes will likely be lower than average and even the Canadian markets will likely see less volume. This morning, futures are positive along with the DAX which may result in a gap open. The market condition scans remain neutral, and the market bias indicators are showing a moderate statistical bias to the upside.

Gold and silver continue to run speculatively higher on dollar weakness.

Happy Thanksgiving to any of our US readers.

Index	Change	%Change	Level	Phase
TSX	-20.97	-0.18%	11579.33	Bullish
DJIA	-14.28	-0.14%	10318.16	Bullish
Nasdaq	-10.78	-0.50%	2146.04	Bullish
SP 500	-3.52	-0.32%	1091.38	Bullish
Russell 2000	-1.00	-0.17%	584.68	Warning
NYSE	-33.17	-0.47%	7084.47	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Futures Pointing to a Down Open for Equity Markets

2009-11-20T08:53:00.000-05:00

Both the futures and the DAX are negative this morning, indicating a negative open. The market bias indicators remain neutral along with the market condition scans, indicating no directional bias. This suggests a choppy trading day. Dell Computers (DELL) missed both earning and revenue expectations.

The Bank of Japan (BOC) is holding their Central Bank Rate at 0.1% and have indicated that Japan is once again experiencing deflation.

According to Mark Carney, Governor of the Bank of Canada, indicators are showing start of recovery. Also he indicates that the Bank of Canada does not have a target for the Canadian Dollar.

According to the IMF, the Chinese Yuan is extremely undervalued.

Once again trading will be speculative and price follow through is likely to be weak.

Index	Change	%Change	Level	Phase
TSX	-52.39	-0.45%	11600.30	Bullish
DJIA	-93.87	-0.90%	10332.44	Bullish
Nasdaq	-36.32	-1.66%	2156.82	Bullish
SP 500	-14.90	-1.34%	1094.90	Bullish
Russell 2000	-14.47	-2.41%	585.68	Warning
NYSE	-109.07	-1.51%	7117.64	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Markets Flat Yesterday and Look to a Down Open This Morning

2009-11-19T08:44:00.000-05:00

Markets traded essentially flat yesterday. Futures along with the DAX are negative this morning, indicating a negative open. The market condition scans are showing no strong directional bias. The market bias indicators are also showing no clear directional bias. This suggests another choppy day. Market energy is weak, meaning we may see the markets drift down today due to lack of interest. The stock markets jumped ahead of the fundamental economic data, as they are a leading indicator. While the economy is improving, the recovery is fragile, with worries about the rising deficits being created by countries around the world.

US jobless claims came out this morning and were within expectations, so unlikely to move markets. The Natural Gas Report comes out at 10:30 am today.

Index	Change	%Change	Level	Phase
TSX	+22.69	+0.20%	11652.69	Bullish
DJIA	-11.11	-0.11%	10426.31	Bullish
Nasdaq	-10.64	-0.48%	2193.14	Bullish
SP 500	-0.52	-0.05%	1109.80	Bullish
Russell 2000	-2.19	-0.36%	600.15	Warning
NYSE	-7.35	-0.10%	7226.71	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Markets Continue to Move Up on Lower Volume

2009-11-18T08:11:00.002-05:00

Evidence of the improving economy continues to inspire small investors who are continuing to move the markets up. However, volumes have been lower than average, suggesting that the institutional investors are on the sidelines. The chart patterns of some of the more speculative stocks also suggest institutions are quietly exiting. Given this, all traders should be prepared to exit any trades that do not move in the anticipated direction.

The negative correlation between the US dollar and the markets remains in play as we saw the markets rise as the dollar continued to fall.

Futures this morning are positive along with the DAX, indicating a positive open. The market bias indicators are neutral. The market condition scans are showing a weak bias to the upside, but with volumes and energy low, follow-through is not reliable.

Commodities continue to benefit from the weakness in the US Dollar with oil , gold and silver trading positively. The TSX is benefiting from this, but the mining and oil stocks are not keeping up with the commodity futures.

Canadian CPI was up in October by 0.1%, the first rise in 5 months.

Index	Change	%Change	Level	Phase
TSX	+117.74	+1.02%	11630.00	Bullish
DJIA	+30.46	+0.29%	10437.42	Bullish
Nasdaq	+5.93	+0.27%	2203.78	Bullish
SP 500	+1.02	+0.09%	1110.32	Bullish
Russell 2000	-0.53	-0.09%	602.34	Warning
NYSE	-3.04	-0.04%	7234.06	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a positive bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart

Markets Today to Open Positive

2009-11-16T08:41:00.002-05:00

This morning futures and the DAX are positive indicating a positive open. The market condition scans are showing limited institutional activity and the momentum buy and momentum sell scans are virtually equal suggesting no strong directional bias and a trading range market. The market bias indicators are also relatively neutral, showing a very weak downside bias.

The markets may react to the US retail sales, which are up much better than expected, due largely to auto sales. The Empire Manufacturing Index is above zero, but slightly below expectations. Canadian September Manufacturing sales are up 1.4% vs. the expected 1.7%.

Commodities continue to benefit from the weakness in the US Dollar with oil up slightly this morning and gold and silver continuing to trade positively.

Index	Change	%Change	Level	Phase
TSX	+46.92	0.41%	11407.68	Warning
DJIA	+73.00	+0.72%	10270.47	Bullish
Nasdaq	+18.86	+0.88%	2167.88	Bullish
SP 500	+6.24	+0.57%	1093.48	Bullish
Russell 2000	+5.95	+1.03%	586.28	Warning
NYSE	+56.84	+0.80%	7119.89	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

Having Virus Problems

2009-11-10T09:26:00.002-05:00

I seem to be having some issues with a Trojan and virus on my computer. Posting will resume on Wednesday or Thursday as I ensure that my computer is cleaned.

US Non-Farm Payroll Numbers Slightly Higher than Expected

2009-11-06T08:53:00.000-05:00

US Unemployment Rises to 10.2%

The jobs reports are widely followed and can move the markets depending on how market players perceive the numbers. Canadian job losses were higher than expected at 43,200, with Canadian unemployment rising to 8.9%. The US unemployment rate is at a 26 year high at 10.2%. In trying to understand these numbers, it seems to support the hypothesis that we are experiencing a structural change in the economy. What this means is that the skill sets that are available do not match the skill sets that potential employers are looking for. It also indicates that the kinds of jobs that have been lost in automotive, financial services, retail, and construction are not likely to comeback, but rather, that different skills will be needed and new industries will emerge.

While futures were marginally positive prior to the jobs report, futures dropped into negative territory after the announcement. The DAX is slightly positive. This suggests a mixed open. The market condition scans remain weak, with directional bias only slightly positive. The market conditions scans are slightly negative. Once again the short term picture remains mixed, making swing trading more risky. Volume on the indexes has been lower than average, indicating the lack of energy in the market.

Index	Change	%Change	Level	Phase
TSX	+109.50	0.99%	11180.70	Warning
DJIA	+203.82	+2.08%	10005.96	Bullish
Nasdaq	+49.80	+2.42%	2105.32	Bullish
SP 500	+20.13	+1.92%	1066.63	Bullish
Russell 2000	+18.03	+3.20%	581.15	Warning
NYSE	+119.73	+1.75%	6950.16	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a negative bias

Energy: moderate

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

Market Energy is Low, Favouring the Downside

2009-11-05T09:08:00.001-05:00

After showing some life in the morning, markets started to sell off and closed with little movement. According to Martha Stokes, CMT, this type of market action is indicative of small investors buying on the dip. The institutional investors that have the power to move the market remain on the sidelines, waiting to enter on better prices.

Futures this morning are positive and the DAX is slightly negative. This suggests a positive open, but no strength. The market bias indicators are neutral, which favours the downside. The market condition scans are also showing no strong directional bias. So even though the markets may open positive, there appear to be no catalysts to continue to move it up today. The most likely scenario is to see markets continue to move sideways or possibly slip downwards.

The futures are positive on the basis of reduced US jobless claims. The non-farm payroll report comes out on Friday. If these numbers are positive, it may be seen by the market as a positive since it means that the US is no longer losing jobs, so incomes are not continuing to be lost. US productivity is significantly up.

Manulife (MFC, MFC.to) has reported a substantial loss which will likely weigh on the financial sector in Canada.

Index	Change	%Change	Level	Phase
TSX	+45.38	+0.41%	11071.20	Warning
DJIA	+30.32	+0.31%	9802.14	Bullish
Nasdaq	-1.80	-0.09%	2055.52	Warning
SP 500	+1.09	+0.10%	1046.50	Warning
Russell 2000	-7.50	-1.31%	563.12	Warning
NYSE	+17.73	0.26%	6830.43	Warning

Source: Telechart

Short Term market outlook:

Bias: Scans showing a negative bias

Energy: moderate

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

GM Cancels Deal to Sell Opel to Magna Citing Improving Business Conditions

2009-11-04T08:43:00.000-05:00

An interesting development this morning was the decision by General Motors (GM) to scuttle the deal with Magna (MGA, MGA.a.to) for Opel. GM’s reasoning for this is that business conditions are improving. GM was also the recipient of bailout funding. It will be interesting to see what, if any, impact this will have on GM and MGA stock prices today.

Futures and the DAX are positive this morning indicating a positive open. The market condition scans are mixed with a slight bias to the downside. The market bias indicators are neutral indicating another choppy day intraday. Other market breadth indicators pointing to this include the VIX, which spiked on Friday and has pulled back for the last two days. The TRIN for the NYSE is still above one, but declining, also confirming some of the weakness in the price action.

In Canadian news, Enbridge (ENB.to, ENB) reported record earnings and has increased guidance, which should provide a boost to this stock today.

The markets continue to be in transition mode as evidenced by the extreme intraday choppiness yesterday, caution is advised for today as we see more of the same. These type of conditions increases the risks for intraday and swing traders as the markets can turn rapidly triggering stops and possibly creating losses.

Index	Change	%Change	Level	Phase
TSX	+147.55	+1.36%	11025.90	Warning
DJIA	-17.53	-0.18%	9771.91	Bullish
Nasdaq	+8.12	+0.40%	2057.32	Warning
SP 500	+2.53	0.24%	1045.41	Warning
Russell 2000	+8.22	+1.46%	570.62	Warning
NYSE	+27.76	+0.41%	6812.70	Warning

Source: Telechart

Short Term market outlook:

Bias: Scans showing a negative bias

Energy: moderate

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

Downside Momentum Remains in the Markets

2009-11-03T08:56:00.000-05:00

The US Federal Reserve will be reporting Wednesday, and the markets tend to chop around waiting for this announcement. This morning the futures and the DAX are down indicating the downward momentum is continuing, after the slight bounce in the US markets yesterday. The downward bias is confirmed by the market condition scans which have high numbers in the sell momentum scan. None of the major sectors are showing any particular strength either. The market bias indicators are showing a neutral bias.

While the overall momentum of the markets is to the downside, we are in what is considered a "value-oriented" market. This means that more emphasis is placed on company revenues and earnings.

Index	Change	%Change	Level	Phase
TSX	-32.40	-0.30%	10878.35	Warning
DJIA	+76.71	+0.79%	9789.44	Bullish
Nasdaq	+4.09	+0.20%	2049.20	Warning
SP 500	+6.69	+0.65%	1042.88	Warning
Russell 2000	-0.37	-0.07%	562.40	Warning
NYSE	+45.49	+0.67%	6784.49	Warning

Source: Telechart

Short Term market outlook:

Bias: Scans showing a negative bias

Energy: moderate

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

Markets Looking for a November Bounce

2009-11-02T08:47:00.002-05:00

Futures and the DAX are marginally positive. The market condition scans are neutral with no strong bias. The market bias indicators are showing a stronger statistical bias for a bounce. Given this, a positive open is suggested for the markets. However, it appears that the price action for the day will more likely be choppy and indecisive. Earnings reports this quarter have been mostly mixed and flat with the increases coming more from cost-cutting efforts rather than growing revenues. Although the US GDP was positive, this was due to the stimulus spending and programs such as the “Cash for Clunkers”. The challenge for the US is to see if business can recover and stimulate the economy instead of Government.

Institutional investors remain cautious, moving to the sidelines. Once again, understanding the fundamentals of a company and being able to read the charts will provide investors with opportunities. The overall markets may slip back into a trading range again. All of the indexes with the exception of the DOW have closed below their 50 day moving averages on Friday. Due to the heavy sell-off on Friday, we will likely see a bounce today, but as indicated earlier, there does not appear to be any strong catalyst to push the markets back up with any strength.

Index	Change	%Change	Level	Phase
TSX	-164.47	-1.49%	10910.75	Warning
DJIA	-249.85	-2.51%	9712.73	Bullish
Nasdaq	-52.44	-2.50%	2045.11	Warning
SP 500	-29.92	-2.81%	1036.19	Warning
Russell 2000	-17.45	-3.01%	562.77	Warning
NYSE	-215.86	-3.10%	6739.45	Warning

Source: Telechart

Short Term market outlook:

Bias: Scans showing a slightly negative bias

Energy: weak

Primary Trend: sideways

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart

Market Bias Remains Down

2009-10-30T08:55:00.000-04:00

Futures and the DAX are negative, indicating a negative open. The market bias indicators are neutral and the market condition scans have a downward bias. Oil futures are down, indicating a bearish day for the TSX.

Canadian GDP numbers for August were lower than expected actually contracting by 1% which may also contribute to downward pressure on the Canadian exchanges.

As we go into the Halloween weekend, the markets look like they will return to the choppy slip sliding downward price action.

Have a terrifically scary weekend!

Index	Change	%Change	Level	Phase
TSX	+269.89	+2.50%	11075.22	Warning
DJIA	+199.89	+2.05%	9962.58	Bullish
Nasdaq	+37.94	+1.84%	2097.55	Bullish
SP 500	+23.48	+2.25%	1066.11	Bullish
Russell 2000	+13.86	+2.45%	580.22	Bullish
NYSE	+189.62	+2.80%	6955.31	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a slightly negative bias

Energy: weak to moderate

Primary Trend: sideways

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Warning
Consumer Discretionary	Bullish

Source: Telechart