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Thursday, October 6, 2016

Daily update 10/6

A mixed and lethargic day.

The market appears to be in wait and see mode.  Breadth was -53%.  New highs were 93.  We remain trapped between the 20 and 50 SMAs.  Maybe the employment report shakes things up a bit tomorrow if it comes in super strong.  Otherwise, we could be in for more status quo.  I suspect people are waiting for the all important earnings reports to decide whether they should be buying or selling.

The futures broke the lower trendline again, but instead of the selling picking up the buyers stepped in.  So here we are back in between the lines.  Dip buyers are certainly still out there.

Both the green and red counts dropped today.  Lots of indecision.

Until we get a confirmed break above the 50 DMA or below the 20 DMA there is nothing to do but scalp. Earnings season starts next week.  That may provide some impetus to move one way or the other.

We are under a tropical storm warning here.  Based on the current forecast we are on the edge of the 60-75 MPH sustained winds.  While that is not enough to do significant structural damage it is strong enough to cause some power outages.  I have no idea if I will have power when it is time to do an update or not.  If you don't hear from me don't be alarmed.  We are well away from the coast and should be safe and sound.  If the storm deviates from its expected course it is most likely to be further out to sea rather then inland.  We have had storms on a similar trajectory and they can stray to the right a bit.  The right side of the storm is stronger then the left side which is what will be hitting the state.  The exact track of the storm can make a huge difference on the damage done to coastal areas and there is no way to predict that.  Hopefully those along the coast will get inland to safety.


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