Oil and Gold Drop...Stocks Fall...Holding Above Support

DJIA - 514.45, -5.69% SP500 - 58.27, -6.10% NASDAQ Comp. - 80.93, -4.77% Russell 2000 - 28.68, -5.40% Exchange NYSE NASD Advancing 536 422 Declining 2,936 2,453 Oil $67.25 -$5.43 Gold $735.20 -$32.80 $SOX 219.70 -14.39 Strongest Sectors: XLP -1.57%...XLV -2.48%...XLU -4.24% Weakest Sectors: XLE -9.72%...XLY -6.83%...XLF -6.27% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK Oil prices fell again on Monday to a new 52-week low and their lowest levels since the first half of 2007. This led to another rise in airline stocks which pulled back from their highs with the broad sell off later in the day. Leading commodity related energy, solar, coal, gold, steel and Ag-related stocks fell as much as 25%. AEM fell $8.70 or 25.16%. This large drop in oil price is right before OPEC’s emergency meeting on October 24 to call for a cut in production. It will be interesting to see how lower prices influence discussions come Friday. All sectors moved lower again on Wednesday. All sectors moved lower again on Wednesday. Stocks were lower due to stocks like BA and T with disappointing earnings and concerns over a global recession. AAPL rose on Wednesday due to a positive earnings report. The major indices stayed above recent short-term support levels established on October 10 and 16. Stay focused on these key support levels. Notable Earnings scheduled for Thursday: AAI, ALK, BDK, BMY, CELG, CNX, DO, DOW, LLY, F, ESI, JBLU, LLL, MBI, NOV, POT, RTN, STI, UNP, BUCY, BNI, DECK, JNPR, WFR, MSFT, WDC, YRCW Index Commentary The DJIA formed a large black candle with a lower shadow…held above last Thursday’s low. The SPX confirmed Tuesday’s bearish harami…above Thursday’s low…in sideways congestion. The Nasdaq opened lower and closed near Thursday’s low…broke 3-day pennant pattern to the downside…continues in a sideways consolidation pattern. The RUT broke 3-day pennant pattern to the downside…closed above Thursday’s low…consolidating in a potential W pattern. After-Hours Trading on Earnings: AMZN down $7 on outlook AMGN rose $2 on positive earnings BIDU fell $7 FFIV up 7.65% on positive earnings CNW rose $1 on positive earnings Stock Commentary DECK broke the pennant and low of the high day…earnings on Thursday. AAPL moved higher after earnings Tuesday evening. BIDU formed spinning top…Wednesday after close…trading lower after hours. ORCL confirmed shooting star and bearish harami…broke the low of the high day. WYNN new closing low SHLD another 52-week low CTSH fell below the low of the high day today. HANS formed a spinning top in sideways consolidation. C fell to the October 10 S1 level. Wednesday’s Action Moving Up: PNRA, BRCM, UAUA Moving Down: DECK, MA, AEM, ANR, CNX, STRA, MON, X, GS, POT, SOHU, CLF, MEE, MOS, AGU, FWLT, BTU, SCHN, GDX, PCLN, FSLR, FMCN, DRYS, KMT, V, IPI, ESRX, NDAQ, KRE, KBE, GRMN, NUE, SINA, MS, LAMR, COH, ONXX, MER, LDK, INFY, JASO, HANS Intermediate Term Market Trend: Down Short Term Market Trend: Neutral