David Waring

Video Technical Overview:

Good overview of today's market action as well as levels to watch going forward from Brian Shannon over at Alphatrends.net


Fundamental Overview:

Bloomberg: U.S. Stocks Jump on Bond Insurer Bailout Plan, Oil's Retreat - The S&P 500 advanced 38.59 points, or 4.3 percent, to 946.43 the Dow rallied 401.35 points, or 4.7 percent, to 8,979.26 and the Nasdaq Composite jumped 5.5 percent to 1,717.71 as oil's retreat below $70 a barrel sparked a rally in consumer companies and prospects of a government bailout of bond insurers reversed a slide in financial shares.

More on the Financial Crisis:

Bloomberg: Ambac, Bond Insurers Will Present Plan to Tap Treasury Funds, Callen Says

Bloomberg: Industrial Output in U.S. Falls Most Since 1974; Consumer Prices in Check

Marketwatch: One thing the rally isn't: a key reversal, says Mark Hulbert

Marketwatch: Dollar erases euro gains, extends rise vs. yen - The dollar index, was at 82.287, off its peak above 82.5, but still up from 81.551 in late North American trading Wednesday, as risk appetite perked up during a late recovery on Wall Street.

CNNMoney: Oil down 52% from peak - Light, sweet crude for November delivery fell $4.69 to $69.85 a barrel, shedding more than half its value since the summer's highs, after a government supply report signaled weak demand for petroleum products.

Marketwatch: Gold tumbles 4% to close at one-month low - Gold for December delivery lost $34.50, or 4.1%, to end at $804.50 an ounce, as nervous investors seeking cash sold futures contracts.

Chart of the Day

I am going with a chart of the GLD today (ETF which tracks the price of gold) as gold sold off big today on the stock markets rally. We are now once again approaching the long term uptrend line which lies right around the 77.50 level which although we broke briefly last month we closed above keeping the trendline in tact on a closing basis. Traders who feel that inflation is soon to return to the markets may view this as a long term buying opportunity which can be protected with a stop below last months low.

GLD Monthly

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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.