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October 19, 2009

Monday Brief

There's not a whole lot to add to the outlook after the Monday session. The dollar tested the overhead pivot again and then closed bearishly, taking up stocks and precious metals. Despite the positive day for equities, the BKX closed down again. The spyders also saw $140M in selling-on-strength. Overall indications are supportive of a pull-back in the near future. However, the DX appears set for a panic sell, so we may see a spike first. Not very helpful for trading tomorrow, but the plan is to react to the market's next move, not to anticipate it.

After hours, Apple reported earnings and its shares jumped 10 bucks to $200. I'm doubtful there was any true surprise there, but by juicing AAPL, market makers got to chase the shorts out of the NDX, which was up 1% AH in conjunction. I'm keen to look for a chance to fade any gap up tomorrow morning for a rare day trade. The theory is that market makers will be selling into panic buying, and I like being on their side.


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