Largest Point Gain in History

DJIA + 936.42, +11.08% SP500 + 104.13, +11.58% NASDAQ Comp. + 194.74, +11.81% Russell 2000 + 48.41, +9.27% Exchange NYSE NASD Advancing 3,316 2,574 Declining 205 429 Oil $81.19 +$3.49 Gold $842.50 -$16.50 $SOX 269.91 +23.80 Strongest Sectors: XLE +16.47%...XLB +14.06%...XLU +12.07% Weakest Sectors: XLY +3.93%...XLP +4.66%...XLU +7.81% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK If you did not read last Friday’s post…consider going back and reading it now. Stocks had a record setting rally on Monday after European governments stated they would stand behind banks with unlimited funds and guarnatee loans. MS rose over 85% after Mitushishi UFJ Financial, MTU, $9 billion investment complete. Confidence in the financial is beginning to be restored. On Monday the DJIA set a new all-time record for the single-day point rise +936, +11.1%, and the highest percentage rise since March 15, 1933. We like several aspects of Monday’s historic rise: The point rise was more that any single day point drop over the past week. The biggest point drops since September 29 were -777, -679 and -508. The advancers were 94% on the NYSE and 84% on the Nasdaq. Friday’s DJIA sell off and intra-day rally were on 77% above average volume. Monday’s historic rise was on 5% above average volume…the insight…sellers were exhausted on Friday.

The Financial Sector, XLF, stocks moved on Monday including after hours trading JPM, BAC, WFC, C, USB, BK, CME, MER, ICE, MS Ultra Financial ETF = UYG Q3 Earnings releases start NOW…be mindful of this in any trading you consider. Tuesday October 14 Notable Earnings: ABT, ALTR, CSX, DNA, INTC, JPM, JNJ, LLTC, PEP, UB, USNA, WFC Tuesday Regional Bank Earnings: OZRK, CBC, CNBKA, ECBE, FSBK, IBCA, MBWM, PACW, SUBK

Index Commentary The DJIA confirmed Friday’s hammer like pattern…formed a morning star like pattern that rose to Thursday’s R3 level…rose a record 936 points. The SPX confirmed Friday’s hammer like pattern…formed a morning star pattern…rose to Thursday’s R3 level…rose a record 104 points.

The Nasdaq broke through Fridays’ R3 level and moved above Thursday’s high and above Wednesday R1 level…rose 194 points, 11.81%...formed a shaven top large white candle. The RUT confirmed Friday’s piercing line pattern…rose above Friday’s R3 with a shaven top large white candle…moved near Wednesday’s R1 level.

Stock Commentary DECK rose above Friday’s bullish engulfing pattern on above average volume WWW fell to S1 of Friday’s bullish engulfing pattern on above average volume. AAPL rose 13.95 above Friday’s bullish engulfing pattern on 55 million shares BIDU confirms Friday’s piercing line pattern with 24% rise on 50% above average volume ORCL and WYNN confirm piercing line patterns SHLD falls to S1 of Friday’s piecing line pattern CTSH rose above Friday’s bullish engulfing pattern…potential breakout HANS confirmed Friday’s piercing line pattern JPM rose above Friday’s bullish engulfing pattern…rising in after hours trading C confirmed Friday’s piercing line pattern…rising in after hours trading XLF confirmed Friday’s piercing line pattern…rising in after hours trading Monday’s Action Moving Up: BIDU, FSLR, GS, MA, MON, POT, ANR, ESRX, PNRA, SOHU, CF, V, NIHD, CLF, BUCY, AMZN, INFY, NUE, MS, MOS, AGU, X, PCLN, CNX, MEE, BTU, STRA, KRE, NDAQ, FWLT, SCHN, IPI, SINA, GRMN, DRYS, FMCN, DECK, KMT, LDK, ONXX, COH, MER, BRCM, EBAY, JASO, EXPE, HANS, KBE, LCC, UAUA Moving Down: ZION Intermediate Term Market Trend: Down Short Term Market Trend: Down