As I was watching the market and carefully expected the Dollar might go up around now just to make the market to go down.  (Got a hint from Bill) So it’s just amazing to see the market actually going down.

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

As I was expecting somewhat that the market might be moving downside since DOW went over the 10K point, the market seems very unstable , fluctuating and easily influenced by various news. By the way, read below blog from Mr.Bill Cara blog this morning. It’s just a great analysis on the current market situation. 

Let us repeat the refrain; early morning weakness encourages bargain hunting, the shallow correction never falling far enough to allow traders to take long positions at comfortable (major support) levels, so every day the frustrated under-invested money managers chase stocks – buying them from Goldman Sachs — not because they think prices represent value, but only because prices are moving higher. As prices fail once again to follow through on the downside, the shorts are tripping over themselves to cover upside exposure, adding further fuel to the fire, and presto, a rally is born.

Thursday was déjà vu all over again; profit taking on Citigroup (C -5.0%) and Goldman (GS –1.9%) drove futures lower on the opening; however, the selling quickly abated, and buyers methodically pushed prices back into the black by the close (S&P +0.42%).

…

While volume remains tepid, momentum divergences remain plentiful, and many stocks are in distribution zones, the path of least resistance remains higher. We may not agree with the persistence of the rally or whether prices represent good value at these lofty levels, but until stocks actually begin to trace out a pattern of lower highs and lower lows, we have to let the rally run its course.

So basically , we need to stay calm but closely monitor the market. This is surely not the time for buy-and-forget-it type of the long-term investment.

Here is the link. http://caracommunity.com/report/2009-10-16

Another positive day . However, the market was under the negative area for the most of the day but it closed 47 points up before the end. C (Citibank) beat the estimates by reporting narrower than expected loss of 27 cents per share. But it still lost 5% today. Financial stocks are generally in the negative territory.

Also NOK (Nokia) lost $-1.71 (-11.11%) today as the sales declined 20% this year. I was worried something like this to come back in July but then I still sold at lower price than current price. (lol) : Sold Nokia (NOK) at 13.08 But it’s clear that Nokia’s future is not so bright.

Tomorrows Earning Reports are GOOG (Google), AMD (AMD), and IBM (IBM).

Stock market close on 10/15/2009

• Dow Jones Industrial Average : 10062.94 Up 47.08
• Nasdaq Stock Market : 2173.29 Up 1.06
• S&P 500 : 1096.56 Up 4.54
• Gold : 1049
• Oil : 77.54