October is the best month historically for the Dow, and the S&P, since 1998. The Monday before option expiry the Dow has been up 23 of the last 28 years.
The market hit theoretical highs of 9905. To get a theoretical, or exponential Dow high, simply ADD 40 points, or SUBTRACT 40 points from the actual high and low of the day.
We list our Dow projections using theoretical Dow, and our moving average analysis is always exponential. We have also recently adjusted our ATR readings to 5 to 7 days, lowering them because of market volatility.
Lastly, with the market flat lining, and then whipsaw, on this almost inverted struggle to 10,000 we've begun manually doing our "count," which is a bell curve analysis of the overbought/oversold conditions.
For example, today the count is 4 to the call. This shows:
1. There is room to the upside, and the market does not show oversold. This contradicts, however, the bullish % on the Dow or OEX, and helps us recognize that the "count" is extremely affected right now by the uncertainty in the market.
2. The count itself is becoming skewed by the constant whipsaw
The bottom line: There is a strong possibility of a move to the market tops near 10,000. Holding over 10,000 seems unlikely. There is just as strong a possibility, from the struggle we've seen near the high 9800's, that the market is topping.
Gold is at all time highs, and holding. So far.
President Obama won the Nobel Peace Prize for our country, and we are suddenly a "world nation" again yet the vast right wing finds reasons this is shameful, and unfair, with no thoughts of what this honor does for our country.
And the best goes on.
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