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T3’s Take 3: A Little of This, A Little of That

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1) A Little Of This, A Little Of That

After the breakdown yesterday, most traders were sitting back as the FOMC announcement today, Jobs Report Friday, and Presidential Election next week have formed a cloud of uncertainty.

The S&P 500 continued lower, In the wake of yesterday’s breakdown, dropping another 0.45%. The Financial ETF (XLF) was weak again today, dropping 0.66% and closing below the 21 and 50 day moving average.

Also finishing the session down was the Nasdaq as the Nasdaq Biotech. ETF (IBB) turned weak again today, following yesterday’s bounce, closing down 1.84%.

Amid the all the uncertainty Gold (GLD) continued to rally, surging another 0.74%. The 20 year Treasury Bond Fund (TLT) also rallied as traders flock to safety.  

Oil continued its slide, closing down for the fourth day in a row as USO held just above $10.00.

2) FED Does As Expected. Nothing.

Today was the FOMC Statement. The general consensus was that the Fed would not raise rates.

They did not disappoint. However, they noted the case for a rate increase has strengthened.

With just days before the Presidential election, it was unlikely that the Fed increase rates but they have set things up for a December hike.

The odds of an FOMC rate hike for the December 14 meeting haven risen to 80%.

Cleveland Fed President Loretta Mester and Kansas City Fed chief Esther George were the only two opposed to leaving rates unchanged.

U.S. Markets were not phased by the announcement as everyone looks ahead to next week.

3) The Power of the Soup Nazi Sell Pattern

This afternoon, T3 Live’s Jeff Cooper provided the following thoughts into the USO:

In mid-October we flagged the USO/Oil Soup Nazi sell signal when they eclipsed and then stabbed below their prior swing highs within a 20 day window.

In other words there was no soup for the new 20 day trend followers.

At the same time oil was squaring out in time/and price basis the February low.

As offered in yesterday’s morning’s report, important support in oil is 46/46.50 and below that is ugly.

Click here to learn more about Jeff Cooper’s Daily Market Report.