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Monday, October 5, 2009

Market Movement Monday

Thursday and Friday where interesting, I covered a bunch of shorts I put on Friday September 25th. The market is behaving differently than the last 6 months.

First off, the USD broke below the short-lived bull trend line, and the market also went down. For the last 6 months, when the dollar lost value, the market rallied, but not this time.
Further, the markets went down AND US 10 year treasury yields went down.
And finally, gold kinda treaded water.

The market is yet once again on the brink of a decline. It could be a stampede after 62%+ up in under 6 months. The Federal Reserve bank stopped it's Quantitative Easing (buying US treasuries), and now the market is faltering.

I am trying to hold on the sidelines, but willing to jump in short again if SPX hits 1050-1060, or if the whole market starts to seem to come apart.

US Treasury yields going lower indicates fear, and a flight to saftey. if you have been long since SPX 666, I still advise to dump a portion to protect the returns.
Here are the charts:

From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

Below is the TNX, US 10 year treasury yields. Notice how quick the market flees to bonds as soon as the market shows any weakness.

From WebSurfinMurf's Financial Blog

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