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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • STOCK JITTERING BUT STILL HOLDING - By WSS Research Desk 0 comments
    Oct 9, 2013 2:53 PM | about stocks: TLRD, JOSB

    By Carlos Guillen

    Equity markets have been in an out of wining territory so far in today's trading session, as the Government shutdown continues and as Janet Yellen awaits nominations to the Fed Chairman role.

    Investors appear to be looking forward to having Yellen as the new Fed Chairman, as the belief is that she will continue the loose monetary policy that Ben Bernanke has held to the present. Of course, not all are content with her dovish stance as many think it is time to start closing to flood gates to the economy. Well ... it is anybody's guess at the moment what direction she will take, but at least it is helping keep stocks from sinking further in today's trading session.

    Certainly creating jitters in markets today is the continuing stalemate in Washington, but all that can be done is to sit tight while the clock ticks.

    Perhaps a bit more encouraging was that shares of Alcoa are up over 3.5 percent after the Aluminum maker delivered better than expected earnings after the close of trading yesterday. The company was successful in lowering costs and improving productivity, while revenue declined less than predicted. So now that Alcoa has reported Wall Street has entered, unofficially, the start of earnings season; and it's certainly a good omen to see that its results beat expectations.

    Another rather encouraging development was that Jos A Bank Clothing JOSB made a proposal to acquire Men's Wearhouse MW for $48 per share. The news has shares of MW up over 28 percent in today's session.

    On the housing front, as we have been witnessing, rates inched higher. The Mortgage Bankers Association said that its seasonally adjusted index of mortgage applications rose 1.3 percent in the latest week, as a 2.5 percent increase in refinancing activity offset a 0.7% decline in purchase applications.

    In a few moments, the Street will be getting a view of the minutes to the Federal Reserve's most recent policy-setting meeting, the one in which the Fed defied expectations and kept its monetary policy intact. The minutes will be released at 2:00 p.m.

    Technical Standoff
    By David Urani

    By the way, there's a pretty big technical test of support going on here for the Dow around the range of 14,775. Fail here and it could see little resistance much further to the downside. However, the bulls and bears seem to have locked horns here today as the markets are flat right at this key level. While the action may seem subdued on the surface given the Dow is essentially flat on the day there's a lot of anxiety under the surface. We wouldn't be surprised to see a late day surge by Wall Street either in a bounce off of support or a crash below it, hopefully the former. The next move by either the President, or Speaker Boehner, or the Fed could be the deciding factor, let's wait and see.

    (click to enlarge)

    So here we are stuck in a Washington stalemate, but I suppose if there's one small silver lining to $16 trillion threatening to go into default then it's oil prices going lower. Our government's lack of functionality is pushing oil down another $2 today to below $102. That puts it at a three-month low after previously touching above $110 last month.

    (click to enlarge)


    Stocks: TLRD, JOSB
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