I don't think I've seen a day with more gyrations on terrorism news. Just after 2:00 the FBI warned of possible threats in Cali and New Mexico and the market sold off. Then at 3:19 there was news of Pakistan capturing a 'most wanted' Qaeda member, which gave the market a little bump. Then less than 15 minutes later there was news of a suspicious vehicle in D.C. After all of that I think it's pretty impressive for the market, especially the NASDAQ, to have closed on the upside.
As for the charts, the bounce in the indices looks real tenuous to me. My long-term group of Multiple Moving Averages is telling me to lean to the short side. There's still a little room for the indices to test those MMAs though, but I'm already starting to see what look like attractive shorts (like the Dow itself). I'd like to let them lift a little more before really pressing the short side though. But I'll do whatever my scans tell me to.
There was some some good stuff in tonight's Worden Report (emphasis is mine):
A Full HouseThe Nasdaq was able to fill out the deck today. All three of the major averages are now in Short-term Uptrends. Please do not write and compliment me for predicting it. I did not predict it. This has been an exercise in observations - not prediction. I watched each of the averages move into Short-term Uptrends and I described it. Ninety percent of trading is observing and waiting for an opening. When the opening occurs, you can then predict something. That's worth another eight percent. The last two percent are to decide something.
Tomorrow we might gain some insight into what the market thinks of the Democratic candidate. And whether it's still afraid of weekends. I suspect we may see some retrenchment. -DW
ASSUMPTIONS
Primary Trend: UP
Intermediate Trend: DOWN
Minor Trend: UP
