Wednesday, September 26, 2007

Closing Market News September 26, 2007

The Dow closed up 99.50 at 13,878.15 and the Nasdaq closed up 15.58 at 2699.03. Transports closed up 27.40 at 4834.12.

Total volume on the NYSE was below average trading 1.29 billion shares. Up/down volume was 2.20 to 1 positive, Nasdaq up/down volume was 1.49 to 1 positive.

Dec. E-mini S&P futures closed up 7.25 at 1536.25 and the Dec. Nasdaq 100 futures closed up 12.00 at 2109.50. Dec. E-mini S&P futures total volume was average trading 1.67 million contracts. Dec. 30 Yr. T-Bond futures closed down 0-04 at 110-22.

Nov. Oil futures closed up .77 on the pit contract at 80.30 and Nov. Natural Gas futures closed down .04 at 7.05.

Dec. Gold futures closed down 3.50 at 735.40 and Dec. Silver futures closed down 0.075 at 13.545.

Grains were higher with Dec. Wheat closing limit up 30 cents at 9.17 ¼, Nov. Beans closed up 17 ¼ at 9.90 ¾, and Dec. Corn closed up 3 ¼ cents at 3.75.

Dec. Live Cattle futures closed down .45 at 100.05 and Nov. Feeder Cattle closed down 0.125 at 116.250. Dec. Lean Hogs closed up .20 at 62.50.

“Money is like manure; it’s not worth a thing unless it’s spread around encouraging young things to grow.”

Author: Thornton Wilder

AS I SEE IT: The market traded higher in overnight trading and when the regular trading session opened it sold off a little, but buyers came in and bounced it up to resistance. After they pumped them up they dumped them back down near the opening gap. About 3:00ET a rumor hit the floor that Warren Buffet was buying a 20% stake in Bear Sterns and the market rallied back to resistance for the second time today. The Dow sold off about 38 points from the high but still closed up 99.50 points on the day. The E-mini S&P sold off 5.40 points from the high but still closed up 7.25 points.

For 5 out of the last 6 days the Dow and E-mini S&P have traded to resistance during the day but have sold off going into the close. There was the Bernanke bounce but not much has happened on the long-side of the market since then. Starting tomorrow we begin window dressing time again, but if this market doesn’t start moving up soon it might sell off to the resistance zones it broke on the way up, or more.

Today was a day-traders dream, using our trading strategies in the E-mini S&P, Grains, and the Oil contracts. Our Day-Trading Strategies work the best when there is good volume and price ranges. Today we had both.

Have as much fun trading as I do.


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