Schaeffer's Trading Floor Blog

Good Morning

by 2/25/2005 8:00 AM
Stocks quoted in this article:

We follow yesterday's gains with a small upside bias in stock futures. With an hour an half before the open, S&P futures are a point and a half above fair value. Gold is down two points to 433. Oil is down 43 cents at 50.96...

The headlines are mostly quiet as some appear to be waiting for the GDP numbers which are due out in half an hour. Outside that, the headlines are focused on the continuing Qwest Communications/MCI saga...


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Final Figures

by 2/24/2005 5:30 PM
Stocks quoted in this article:

I know it is a little later than usual...but I just finished up the duties that were distracting me for much of the day. Unfortunately I wasn't able to watch the action so I am left playing catch up...

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1200.2 9.4 points 0.79 percent
Dow Jones Industrial Average (DJIA) 10748.8 75 points 0.7 percent
Nasdaq Composite (COMP) 2051.7 20.4 points 1.00 percent
Russell 2000 (RUT) 627.6 7.0 points 1.13 percent
CBOE Market Volatility Index (VXO) 11.30 -0.98 points -8.0 percent

The data above shows a rally in most groups. I went through some intraday charts and it looks like the bulls kept the pressure on right into the close...


Chart Courtesy of Thomson/ILX

A quick glance at the daily charts show that the broad market indices have now erased much of Tuesday's loss.

The calendar for tomorrow looks rather light. GDP data is out before the open so that is where I will pick up the conversation tomorrow...

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My Apologies

by 2/24/2005 3:18 PM
Stocks quoted in this article:

Unfortunately....I need to go back and take care of some more database work from this morning, but before I dash off, I thought I would give away another one of our new Schaeffer's Gold T-shirts?

To enter your name, click on the "Email Nick Perry about this post" link below and tell me you want to win (sorry - no time to come up anything more creative)...

I will take submissions until 10:00 A.M. (Eastern Time) Monday morning when I will put all the emails into a hat and pick a winner for a T-shirt..

Good luck!

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Stocks quoted in this article:

In response to my post below, Dennis says - "Try thinking in terms of years--not months to get "frustrated." I started as a broker in 1976 with the market at about 1000. It traded between 1000 and 770 to 800 for over 6 years before finally breaking out in the late fall of 1982. At the time about 80% of my business was options and commodities. And yes--it could be very frustrating. The bigger problem was being caught short when the breakout came. Those couple of up days really HURT. "

My response - That is a great perspective! It also brings up a good point that "range bound" doesn't equate to "low risk"....


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Stocks quoted in this article:

Franks says - "its amazing how nimble you have to be with the market...there is absolutely no follow thru whatsoever...the market is acting like a drunk it does not remember what it did last night."

My response - I agree. The action has been rather frenetic. The daily chart below of the SPX shows the recent action and the intermediate-term support and resistance levels I mentioned not too long ago...


Created with SuperCharts by Omega Research

As you can see, we have essentially been range bound for the last couple of months. This can be a maddening situation, as Frank points out, because you tend not to get much follow through at the broad market level. This is one of the reasons I try to point out some of the steel/coal/housing/internet stocks as they might diverge from the overall action.

I wanted to post this to let anyone else out there who is frustrated know you aren't alone...I know that isn't much, but sometimes it helps...

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