Monday, September 29, 2014

The Weekly Market Outlook - A Lookout for Bears and the Taxman

*****This week will be telling about the market sentiment going into the 4th quarter. Further wild fluctuations are possible as is the pulling in of the horns by the bulls. Not necessarily giving up or giving in, the bulls would probably prefer to just throw up some dust whilst eying whence danger, if any, is coming.

Protecting our health and interest is the obligation of all of us for ourselves because without us being healthy we can't take care of others. Thus holding on to gains, keeping it on close watch and nearer to our pockets is not greedy but wise especially when markets are looking as if they could turn.

Yet it's not always that simple because we also have to add into the equation the Taxman (IRS for short). If not calculated properly this bite may be worse than a Bear's, so sales of our holdings have to be carefully calculated to do us no harm.  Hopefully we all do our tax planning at the beginning of the year and not the end thus making the end of year decisions more simple but for those who have not, a consultation or at least a study of capital gains consequences may be crucial to keeping healthy and wealthy.

Happy Trading, Living and Dancing
The Weekly Market Outlook - $DJIA $SPX $NDX

©DayTrading with Anni 2007 - 2014 All Rights Reserved

Thursday, September 25, 2014

The Daily Note - Quarter End Profits and Market SellOff

*****See an excuse at the end of a quarter, but especially at the end of the 3rd quarter,  and profits will be taken, slump created from which  new opportunities are formed ... in time. Simply put, from the ashes, phoenix rises.

Given today's $AAPL news it's not surprising that institutions may be taking off positions. How much is the bigger question which will reveal itself in time.  Opportunity will be bought; It's like a phoenix, you can't kill this bird.

But today was not so much about $AAPL as it was about the end of the 3rd quarter and the end of the year scenario beginning to be played. Sell for profits, and minimize tax gains, buy back before the end of year,  for next year profits and do it so no wash sale rule applies. Hence the all important 30 day absence creates a slump after which enough time for opportunity to be formed.

When markets slump or quickly rise, watching levels of support and resistance become even more important because they become the opposite markers on the reverse. Spending time on charts and studying levels pays off in the long run because one does not have to time the top and the bottom, but can recognize direction change more easily and perhaps with better timing.

These were my comments today, Thursday Mid-Day :

$DJIA A bit of a challenge: could we bounce from here? Watch the 16950 support / 17010 resistance 
$SPX Ask yourself: Are institutions/pros taking profits before 3rd quarter end? Watch support 1960-1961
$NDX watch the 4011 then 4000 support : IF we keep bottom then 4040 is bounce upside resistance
Below, Thursday's results and Friday outlook: 
DJIA closed at 16945.80 with same low and which now has potential of testing previous 16932 but also becomes vulnerable to 16900 and 16855 and 16800 test for support
SPX closed1965.99   with same low  so it has potential of breaking lower to support
NDX closed at 4007.82  low of 4007.63  and which broke down the 4011 now has the potential of testing the 4000 low 
So, Trade it well and carefully!

The Daily Pick - ©DayTrading with Anni 2007 - 2013 All Rights Reserved

Sunday, September 21, 2014

The Weekly Market Outlook - $DJIA $SPX $NDX 22 Sept 2014

*****Traders, after holding breath for a few days waiting for the FOMC, let out a sigh of relief which bounced the markets once more to reach highs.  Not much more to it than that.

This coming week is the last of the 3rd quarter, so once more we look forward to the analysts opinions about earnings and what is to come in the 4th quarter to end another year of  positive gains and wonders. After which earnings season once again descends, positioning, tax strategies begin and soon the year will end.

But before I run away with thoughts too far ahead, listen to what my current thoughts are about the possibilities in the week ahead. Then take pleasure in the end of an Indian Summer and welcome the Fall(ing) leaves.

Happy Trading, Living and Dancing

©DayTrading with Anni 2007 - 2014 All Rights Reserved