Daily S&P 500 INDEX TRACKER

[ananda77]

US Calendar:
-quiet Tues -weekly store sales
-$39 bln 3-yr note auction

Bond Market:
Treasury yields turned higher with positive tone on stocks, pending 3-year supply
U.S. 3-year auction expected to benefit from cheapening, relative value on curve

Stock Market:

...SPX 500 is extending its rebound today after a successful defense of the 31 August Close *1020 and the 50 MA *1016; the index surged higher to take out the initial up target 1041 decisively, possibly coming to a temporary stop as high as *1069 intraday

...around the *1070 zone, a mild slide back to test the *1041/*1048 area is possible; if this support is successfully defended, further gains include a second go at *1080 initially with potential to test the important *1100/*1119 upper barrier range

...the USD is extremely oversold, so any short- to medium term correction (possibly up to 10%) will quickly stop the equity markets' seemingly unstoppable advance

Trading Strategy:

-CONSERVATIVE-
Marty Chenard: “I am now staying in cash on the long side.” The C-RSI is still positive so there could end up being a whipsaw to the upside, but the odds are that we are going to see high whipsawing volatility that no-one likes to invest in. Staying in longer right now, is only for people who like "rolling the dice".)

-CONTRARIAN-
Q&A with Prechter (EW)
http://www.tradersnarrative.com/qa-w...ysis-3091.html
Marc Faber: “Monetary policy in the United States will stay expansionary”
http://www.creditwritedowns.com/2009...ansionary.html

DAY TRADER:
-short-term bullish over the next up to 10 days with bias for a double top pattern followed by 20% (+) correction > target SPX 500 *869
-personal strategy: no equities; holding investments currently neutral to 10% (+) capital hedged
-David Rosenberg: equity markets so overvalued, it is not funny
-Financial Insight and daily Market Timing Signals: current posture >cash

DUMB MONEY:
-fully invested -no worries mate-

Long Term: THE BEAR

_no guarantees and trading strategies are just ideas_

Kind Regards

[ananda77]

DUMB MONEY:
-fully invested -no worries mate-

...re: Dump Money -according to 'Technical Take'-

1. The "Dumb Money" indicator looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1) Investor Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio.

-The "Dumb Money" indicator remains extremely bullish, and it actually ticked up this past week- The "dumb money" or retail investor (sorry, no offense meant to those who have been right for the last 3 months) continues to buy the dips aggressively.

2. The "smart money" indicator is a composite of the following data: 1) public to specialist short ratio; 2) specialist short to total short ratio; 3) SP100 option traders. The "smart money" is neutral and has yet to tip its hand. Company insiders continue to sell shares to an extreme degree (4:1 ratio -data point 04 October 2009)

...and as the market has shown so far this week, the up tick in the "Dumb Money" indicator and the extremes seen in the Rydex asset data would suggest continued buying on the dips. The upward bias in prices remains until the extremes in bullish sentiment are unwound.

Kind Regards