Here is the dollar price chart. It went up 0.70%.

Today the financial stocks were very week. Citibank(C) $4.27 -4.26%, Bank of America (BAC) $15.40 -5.06%. Actually I got out of C today. Just don’t want to be in Financial sector at this volatile times.

Many websites suggested to buy PowerShares DB US Dollar Index Bullish (UUP) which moves along with the price of dollar. If you do want to have hedge against the volatile stock markets , you might want to do that. I think that there is high chance of dollar going up and leading the market down.

Here is another interesting chart. This is the DOW chart for the last three months. As you can see the daily RSI7 value was over 70 around Sept 19th and hit point 30 around Oct 2nd. That’s about 14 days. And the same pattern has started on Oct 17th and currently heading down to lower line (30). It’s may be the down trend will be continued on for few more days and possibly come back after 14 days? Oct 17th + 14 days = that’s about Oct 30th . The last day of October. Would that be the lowest point of current bear trend? I don’t know. This is just for fun. But I think that the bearish trend has started, but I am not sure how long it will last. We have to act on the technical indicators and price actions.

This time we should not loose the opportunity to hop on the ride. Good luck everybody!

Stock market closing on 10/26/2009

• Dow Jones Industrial Average : 9867.96 Down 104.22
• Nasdaq Stock Market : 2141.85 Down 12.62
• S&P 500 : 1066.95 Down 12.65
• Gold : 1043.10
• Oil : 78.63
• Natural Gas : 4.52

According to Mr. Bill Cara’s today’s blog, he said that the people are pulling their bids because of the Obama Administration submitted white paper on Financial Industry Reform.

[7:52am ET] Technical analysts worldwide are reporting the breakdown of significant support levels, ie, a series of recent lows that brought in buying, which indicate that the equity market’s advance since early March is now over, and prices are most likely to slide into summer.

The weakness started a few days ago with alarming economic data, particularly in Europe, resulting in a decline in the Euro and rally in the $USD. The downward pressure on commodity markets and equity markets, which until now has brought in a pattern of buying the dips, suddenly took on a new light as traders pulled their bids. Possibly there was selling yesterday resulting from the uncertain reaction in Congress and on Wall Street to the Obama White Paper on Financial System Reform.

…

If bankers feel threatened by stricter guidelines and tougher regulatory scrutiny, rest assured they will voice their displeasure by pulling equity bids, aggressively pushing stocks lower, letting politicians know bankers hold the real power.

So are we supposed to be little cautious? Or hold on tight for another rough ride?

Karen Finerman said the rally had nothing to do with anything fundamentally happening in the economy or business. Rather, she said, it had to do with the fear of being left out. Specifically, she said people on the sidelines felt they had to jump in.

It’s true. With everybody jumping into the market, I feel like I am loosing the great opportunity!

He said strong fund flows and technicals are driving the markets higher, not fundamentals. He said the situation won’t turn around until the employment situation turns around and consumer spending picks up.

Let’s see how tomorrow will turn out.

But, I believe that we are going to have a bright day tomorrow and a positive day. I know that it’s time to see some green after long negatives.

What an amazing day!

Dow was down almost 800 point middle of the day but it ends with only -370 points = 9,950 point.

Did you catch some of the great stocks at bargain price today? Bill has recommended to take action today.

This article was posted before the market opening.

The selling that is happening abroad today will probably create more of the same at the open in NY and Toronto, but then I think there will be a turn during the day. For that reason, I will focus later in the day (in an ADDENDUM) on a couple names of the 36 that last week I listed as Buy candidates. These I will recommend buying today.

Mr. Bill Cara believes that the bull cycle has started. And this would be your one of the life time chances that you can create great wealth.

The current recommendation lists are captured here
http://rsi7.com/2008/10/02/recommende-stock-lists-from-bill-cara/.

Good Luck everybody!