Friday, October 03, 2008

A Market Breakdown and Other End-of-Week Perspectives

* Breaking Support - The Russell 2000 Index (IWM) shown above broke beneath multi-month support on Friday. As noted in Thursday's Twitter post, we're also breaking down in the advance-decline lines for the NYSE common stocks and SPX stocks. Both have broken decisively below July's levels, erasing divergences to that point. As we've been seeing with the money flow reviews, there is simply more dollars leaving equities than flowing into them; that is taking its toll.

* An Email From Decision Point - Apparently a few readers were having problems with the user names and passwords provided as part of a free trial to the Decision Point service, as described in a recent post. Carl Swenlin, the site's keeper, wrote me earlier today:


There has been some kind of mix up on the ID/PW I gave you for your readers. Anyway, I would like to extend the free access offer through 10/26 with a new ID/PW set:

User ID: magic55
Password: moments

My apologies to your readers for our flub.


So there it is. The new user ID and password will now be good through October 26th; many thanks to Carl for fixing the problem and extending the offer.

* Revenge, Retribution, and Rescue - Thanks to an astute reader for passing along this behavioral perspective on the government's rescue package.

* Credit Crunch as a Network Failure - Thoughtful post from John Rutledge.

* Taking Losses - Some wisdom for options traders from Mark Wolfinger.

* Five Ways to Trade This Bear Market - Useful perspective from The Market Speculator.

* Top Traits of Traders - Interesting report from Brian McAboy.

* Finding the Next Big Thing - Thoughts from The Research Puzzle on finding the next bandwagon.