Dec 10th 2014 – The Trend is at the End

I think the main trend changed to the down side starting on the 5th of December when the high of 2079.47 was put in.  I had expected it to break above 2080 before selling, but I guess it got pretty close.

Therefore, my idea of an imminent new all-time high has been busted.  However, I am hardly crying in my soup, I will be collecting some of the biggest profits I have ever made from the market tomorrow morning.

So after such a huge move up it is time to clear decks and keep the powder dry.  My ideal scenario would be a sharp gap up tomorrow followed by more selling, but the market rarely cooperates with my best wishes…so, we’ll see!

Market News:

U.S. stocks closed sharply lower on Wednesday, furthering the week’s losses, as the price of crude fell to a new five-year low and the Organization of Petroleum Exporting Countries cut its demand outlook for next year.

The Dow Jones Industrial Average fell more than 280 points before recovering some of those losses to trade about 270 points lower.

The Energy sector led declines on the S&P 500, with a fall of more than 3 percent in the hour before the close.

OPEC reduced its estimate for 2015 by roughly 300,000 barrels a day, with the cartel saying the effect of the 40 percent drop in prices on supply and demand is uncertain.

After falling as low as $60.43 a barrel, Crude futures for January delivery closed down $2.88, or 4.5 percent, to $60.94 a barrel, the lowest since July 2009. The February gold contract dropped $2.60, or 0.2 percent, at $1,229.40 an ounce on the New York Mercantile Exchange.

Toll Brothers traded lower after the home builder reported mixed quarterly results; Yum Brands fell after the operator of Taco Bell and other fast-food brands cut is profit outlook for the year for a second time; Costco Wholesale initially climbed after the warehouse-club operator posted a better-than-expected quarterly profit and GlaxoSmithKline declined after Bank of America Merrill Lynch downgraded its stock to underperform from neutral.

Thursday:

Earnings: Lululemon Athletica, Ciena, Adobe Systems, Quiksilver, Esterline Tech

8:30 a.m.: Initial claims

8:30 a.m.: Retail sales

8:30 a.m.: Import prices

10:00 a.m.: Business inventories

1:00 p.m.: $13 billion 30-year bond auction

News Sources:  CNN Money & CNBC