Saturday, October 17, 2009

Stock Market Update - October 16, 2009

The money flow for the hourly chart has bottomed and now is moving back up in the cycle ... we are about mid-point in the cycle.

The daily chart is peaking from a money flow standpoint. Remember money flow can bounce along the top for a little while. I would wait until the hourly chart peaks here and then look to put on a near term short position with a quick trigger finger to close the trade out if money flow and price is moving against you. On Friday we had a 75% down volume day on the NYSE and the money flow was out and it was large amount that flowed out.

It is possible the dollar is making a low here ... for a while. We will just have to wait and see what the market for the dollar is going to do here ... its direction is important to prices relating to equities and commodities.

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