Election Day: Stocks, Oil, Gold Rise Big

DJIA + 305.45, +3.28% SP500 + 39.45, +4.08% NASDAQ Comp. + 53.79, +3.12% Russell 2000 + 7.47, +1.39% Exchange NYSE NASD Advancing 2,779 1,843 Declining 743 1,041 Oil $67.81 +$6.62 Gold $757.30 +$30.50 SOX 247.71 +10.61 VIX 47.71 -5.95 Strongest Sectors: XLE +6.44%...XLF +5.63%...XLB +4.69% Weakest Sectors: XLV +1.31%...XLP +1.47%...XLU +1.88% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK After falling through its 30 DMA on Monday, the VIX dropped another 5.95 points or 11.08% to close at 47.72 on Election Day. The closing high for the VIX was October 27 at 80.06. In just a week and a half the VIX has fallen by 40% while the markets have risen. Oil prices rose for the second day in a row, rising 10.36%. Energy stocks were the leading sector as a result. Gold rose $30.50 and commodity related stocks also performed well on Election Day. The broad market indexes rose into the zone of resistance formed on October 14. Today the DJIA had a higher close than on October 14 and this is the highest close since Monday, October 6. Additionally all nine sectors closed higher with XLE, XLF and XLB the strongest on Tuesday. The DJIA closed above its 30 DMA for the first time since September 8. The SPX closed a point above its 30 DMA, which is its first close above that level since September 2. The Nasdaq and RUT are still below their respective 30 DMA. While it is still too early to say a new uptrend has begun, there is certainly more and more technical evidence each day that the big money institutions are becoming more aggressive in their buying and less aggressive in their selling. Our blog post on October 10, “Is this the beginning of the down trend?” appears more and more insightful every single day. What were you feeling on October 10 and how far off did you think we were when we posted that day? Most stocks in our watchlist had very solid gains on Tuesday...see Tuesday's action below. Index Commentary The DJIA formed a large white candle closing above its 20 DMA in the area of horizontal resistance. The SPX formed a large white candle that continued the short term uptrend…Monday’s inside day was a pause rather than a short term reversal…closed a point above its 30 DMA. The Nasdaq formed a spinning top 16 points below it 30 DMA in the area of horizontal resistance. The RUT formed a spinning top in the area of resistance. Tuesday’s Action Moving Up: BIDU, MA, FSLR, POT, V, MON, GS, AEM, FWLT, MOS, BUCY, DECK, CLF, SOHU, AMZN, CF, X, GDX, IPI, CNX, SINA, AGU, SCHN, ZION, NDAQ, KBE, PNRA, KRE, ANR, NUE, PCLN, MEE, BTU, FMCN, NIHD, INFY, LDK, MER, EBAY, JASO, MS, RF Moving Down: STRA, UAUA, LCC, Intermediate Term Market Trend: Down Short Term Market Trend: Up