Hi BiggD. Thanks once again for the Cranker Header. I think that...

Hi BiggD. Thanks once again for the Cranker Header. I think that photo of Spencer Tracey is from the movie The Old Man and the Sea. The classic from Hemingway's short novel.

One of the best quotes in the book is pertinent to trading:

“Every day is a new day. It is better to be lucky. But I would rather be exact. Then when luck comes you are ready.”

and another:

“I may not be as stong as I think, but I know many tricks and I have resolution.”

On to last night's action:

In America:

Dow Industrials -0.81%
Dow Transports -1.14%
SP500 -0.78%
Russell 2000 -0.79%
Nasdaq100 -1.09%
Comment: A wide range day. Volume is increasing slowly.

NewHighs/NewLows 82/27. NH>NL. The ratio of NH/(NH+NL) is at 75.2%. Out of the Do Not Sell Zone. The last three days the New Lows have been above 20, but there's still not a lot of nervousness. New Highs continue to remain strong.

Technical Comment on the Dow30:

The Dow finished at 13000.71. Support/Resistance: 12780/13060.. Falling below the congestion zone.
MACD Histogram. Below zero. Negative.
MACD. Below zero. Negative.
RSI.9 is at 37.4. Negative. In a zone where rebounds can occur.
Stochastic. 19.2. Oversold (marginally).
CCI.14: -182.5. Very Oversold.

The chart remains within the confines of a medium term up trend channel. The short term trend is down.

The 10-Day EMA has crossed below the 20-Day EMA. Negative.

At a minimum, this looks likely to touch the lower edge of the up trend channel. A higher probability is the target shown - around 12250 on the Dow 30.

Industrial Metals were down -0.22%. US$ Gold was down -0.04%. Yesterday I said about Gold: "That might be as far as it goes. It is now back to the support of the 200-Day M.A." A big up day for Gold in the next session would be bullish.

Australian Dollar was down -0.63%. BHP crashed in New York last night, down -3.55% so the double top I talked about yesterday is well and truly in play.

There’s no joy in any of that for Australia today. But we were down heavily yesterday so we might have a narrow range day today. We could see some last-day-of-the-month buying. Let's see how it goes.

APPLE Inc - bell wether stock.

The trend line break and dropping indicators from high levels put this on a sell signal. It's struggled to make head way since that high volume day on 21 August. It looks likely to head down to support around 636, about another -4% from the current level. How it behaves then will have to be evaluated. In the meantime - that's negative for the market.

Redbacka