The Dow Jones Industrial Average was a roller coaster ride Thursday, 10/23/08, closing at 8692, UP 174 points. The stock market volatility was at its highest today as the Dow Jones was up around 220 points in the morning only to do a 360 turnaround to down 200 in the afternoon. That was a 400 point swing! At about 3pm eastern time stocks reversed once again and the Dow Jones rallied into the close. There was a rumor on the NYSE floor and from trading desks that the White House race between McCain and Obama has tightened, CNBC is reporting. The Nasdaq remained down 12 with the technology sector staying weak but reversing off the lows. Key stocks reversing on the Nasdaq were the four horseman, Apple (AAPL ), Google ( GOOG ), Amazon.com ( AMZN ), and Research in Motion ( RIMM ). RIMM went from $44 to $46.40 and I actually caught that ride upward and am now back into cash going into tomorrow. RIMM to me is very attractive under $45 per share.
Dow Jones Technical Analysis - 10/23/08
The Dow Jones was up around 200 points this morning....just giving that 8700 level a retest from yesterday as
I was talking about. The Dow rejected that level and started to head
lower but has bounced off 8243 this afternoon. If we break through that on 10/24/08 you can pretty much bet we retest 8000 again. Remember the 10/10/08 intraday low was 7773 so if we break through Dow 8000 that level would be next support. If you are a long term investor riding this stock market out and we close below 7773....i'd suggest not looking at the stock market for several days. On a brighter note....we closed strong today back up near 8700. If we can close back over 8700 and really build a base there, eventually moving toward 9000, a case could be made that today's retest of the lows was successful....then we could actually start to move higher again. I almost forget what a rally feels like. I'm not talking about
these big moves higher...I'm talking about a long, slow, sustainable rally where the
volatility is low but we move up 50-100 points everyday....that is what we need right now to bring confidence back to the stock market. Don't forget
Carter Worth's Bottom Call! Carter Worth has been spot on lately.
Jim Cramer on the Solar Stocks
Jim Cramer came on CNBC this afternoon and stated that he cannot own any of the solar stocks right now....he even called First solar ( FSLR ), Fourth Solar. Jim Cramer says stay away from Solar!!!
Volatility Index ( VIX ) - 10/23/08
The Vix spiked to around 79 today until 3pm hit and the market reversed to move higher. Since that time it hit 73...so a six point move. At noon the Vix was 65 and moved 14 points up to that 79 level. I say tomorrow we go into the 80's for sure. The Vix closed today at 69.50
Stocks to Watch 10/24/08
Microsoft ( MSFT ) - Earnings out tonight.....they were great
