1. Yesterday, the major stock indexes pulled back after a rally on Monday. Please understand, this is an options expiration week. Often after a Monday rally the markets will do a lot of backing and filling throughout the rest of the week. There is also always a lot of game playing by the big institutional traders this week in the popular stocks. Russell 2000 showing leadership. September sell-off is behind us. S&P Spydr’s trading in a great range right now.

2. Earlier today, earnings were released from Goldman Sachs (GS), Bank of America (BAC), and Wells Fargo (WFC). There was nothing special from these earnings announcements. BAC and WFC are trading down by about 3.0%. GS is trading higher by 0.13%. 

3. Pull back on gold and silver. Today is a new day. This is exactly what you want to see. We had a monster move in 2020 into August. Gold futures up$19 right now. Just below 50 day moving average. Major chart formation, a little ChaCha Dance. GDXJ slightly above its 50 day moving average. Gold loves the 100 day moving average and it always seems to be an important level.

4. US Dollar has been in a sideways trend since July. Consolidation range 94.8- 92.5. Dollar bottom is close to being made. International investors are holding off until after the election.

Next week is when we will start to get the big tech stocks reporting earnings.

1. Markets seem to be doing some backing and filling after yesterday's rally. Often, when the market rallies on a Monday they will often pull back and chop around throughout the week. This Friday is also options expiration for the month of October. That tells me that we must expect some institutional game playing in the popular stocks. 

2. Earnings season kicked off today with JP Morgan Chase (JPM) reporting earnings before the opening bell. Stock is down on the news along with others. J&J down on Covid Vax fears. Handful reporting, a bit negative. Next week big tech reports. This week the earnings picture will still be a bit light, but it will move into full gear next week. This week we will see mostly earnings from the big banks. Next week, we will start to see the tech companies report.  

3. Gold and silver getting slammed today. Gold has been trading with the market. GLD down 1.7%. Gold futures down. We haven’t yet satisfied the pattern. SLV down. Silver down 4 percent. Don’t get too excitied about the up days and once the pattern is completed then it’s off to the races. It may move before the election, but we’ll know soon. More clarity will come as we get closer to the

1. The tech heavy NASDAQ Composite is the big winner this morning. Today is Columbus Day in the United States, so volume trends should be light overall. It is also Thanksgiving Day in Canada, so that will keep volume a bit lighter as well. 11,700.

2. This Friday is options expiration for the month of October. Often, options expiration is filled with a lot of whipsaw in the popular stocks. I always tell my trading group to expect the unexpected. This Is a week where stocks that are up sharply are vulnerable to pullback and stocks that are beaten up and likely to see bounces. Basically, this is a week of institutional game playing. Much like the games that bookies play to insure they come out on top.

3. Earnings season kicks off tomorrow with JP Morgan Chase (JPM) reporting earnings before the opening bell. Remember, trading stocks into its earnings announcement is a gamble. I prefer to wait until after the earnings announcement before getting into that particular stock. Never forget, the market anticipates the anticipators. Especially with the market darlings. Just be aware and be careful.

4. Gold and silver up big on Friday, spot lower and futures up slightly in gold today. Silver taking a pause today. Will it consolidate and then go higher? Nick thinks some more backing and filling is due. Copper has been consolidating nicely. Put in a high 3.12 and now at 3.06. The gift that keeps on giving.

5. Election news has been digested by the market. We got the September pullback and now they recovered. Markets are holding up well. The President likes higher stock prices.

1. The Initial Claims report was released this morning. The number was 840,000 new claims. Continuing claims for the week ending September 26 decreased by 1.003 million to 10.976 million from an upwardly revised 11.979 million in the prior week. This is still slow going. but it is moving in the right direction. If these governors in the blue states would open up it would get better much sooner. Things are getting a little better.

2. Yesterday, the markets surged sharply higher. One thing that stands out to me as a positive is the Russell 2000. Even today, the Russell 2000 is higher again and leading all of the major stock indexes. As I have said before, it is always positive when the small cap stocks show leadership. Remember, investors are looking for growth when they buy small caps, these stocks do not pay dividends. It’s been a laggard. Momentum is decent and could go 4-5% higher in the near term, could see a minor pullback. Middle to October to latter part is shaping to be an entry point. This is a time to go fishing.

3. Nice profit in Coca Cola. It’s a grind. Home builders are holding up well but are extended. Lennar up after a stall. They definitely are slowing. One of the best performers of the year. People are moving to FL. They can’t build the homes fast enough. Even in blue states outside of the metro areas, markets are strong with the urban flight to the suburbs. Moving companies are movers shaker. Money rotation. Retail has done suprisingly well and are show signs of life. Energy is stalled, solar stocks have been very positive. Oil is in everything.

4. Gold and silver: flat for the day. Not much to be made about it. Inside bar pattern still in place.

1. Everyone is talking about the debate tonight between Vice President Pence and Kamala Harris. This could move markets a bit, but I think it will be more entertainment than anything else.

2. The major stock indexes are trying to recover this morning. Yesterday afternoon, the markets suffered a big sell-off after President Trump told Mitch McConnell to focus on the Supreme Court Justice nominee and forget the stimulus deal until after the election. He basically said that the Democratic party is not bargaining in good faith. This sent the markets falling like a rock as the markets love more stimulus. I think we could see more chopiness going into the election. 

3. Gold and silver got slammed yesterday. Overall, yesterday was mass selling, across the board. Everything got dumped. One big panic signal. When selling happens, it goes really quick. Getting closer to an entry point. When you get a monthly parabolic chart it will take several months to digest the gain and continue.

1. Yesterday, the major stock indexes rallied sharply higher. Not much volume. The rally was broad based and the Russell 2000 Index was the leader percentage wise. That is very encouraging going forward. It is always a big positive when the Russell 2000 (small cap stocks) show leadership. It’s up 1 percent today. Lets see if the market can build on that. 

2. Election risk still present. There’s not enough money to crash the market for the election. Money is flowing. End of the year rally is on the way and it could be very large. Next year is questionable. The 1 year of any decade is very choppy. Nothing

3. Often after a big rally session we will see a more subdued or quiet day. That seems to be what we are seeing today so far. The politicians are still working on a possible stimulus deal, but I'm not sure we will see that anytime soon. 

4. Gold, silver and copper, copper continues to look very strong on the chart. The daily chart is extremely strong. Gradual pullback to $2.96, down from $3.12.

1. Markets are starting the week higher. today's rally is being led by the Russell 2000 Index (IWM, RUT). It is important to remember, the Russell 2000 Index represents small cap stocks in the United States. It is usually very positive when the Russell 2000 shows leadership. This is where people invest for growth, not dividends. Potential sector rotation.

2. On Friday, the tech heavy NASDAQ Composite and NASDAQ 100 were crushed. They were both down by more than 2.0%. Fortunately, money came out of tech and went into many other leading areas of the market. Financial stocks, industrial stock, and even energy stocks rallied ahead of the weekend. As I have stated before, if money leaves tech and starts to go into other areas it is a major positive. We call that a broadening of the market. Either way, expect choppiness into the election.  

3. Gold and silver are up. Seasonal indicators are all up. Historically Q4 is very bullish. ABC pattern could take gold futures to $mmmmm2800!

1. President Trump and the First Lady contract coronavirus. Lets see how he gets through this. The world is watching to see how he recovers from the virus. Will the next debate take place? Expect the unexpected. Let’s see how he will get through it. As long as he does well, the markets won’t go into turmoil. Market gapped down but recovered. How it closes is the important thing. A wild session already.

2. The non-farm payroll report was released this morning. September nonfarm payrolls increased by 661,000, expectations were for a gain of 800,000. The unemployment rate declined to 7.9% from 8.4% in August. Things are improving and there’s still a lot of places closed.

3. Gold and silver down slightly, little bit of down ticking. Markets are down as well. The next 30 days are going to be extremely choppy and crazy. You’re gonna see more unexpected events and news.

1. Earlier today, weekly initial claims for the week ending September 26 declined by 36,000 to 837,000. Weekly continuing claims down a little. This number was inline with expectations. Tomorrow, the non-farm payroll report will be released by the BLS at 8:30 am. The non-farm payroll report will be important this time around after yesterday's strong ADP report. 

2. So far, the major stock indexes have rallied since last Thursday from an oversold condition. Now the market has to prove itself that it is ready to move backup to new highs. I think you still want to be careful right now as we are just one month away from the election.  Good move at the open and then faded and now headed back up. Light volume and loads of headline risk. Stimulus or not? Short term traders beware. The deal will eventually go through, they love to spend money. Hold up is on bailout for cities and states. Not likely to go through.

3. The Bunny Is Back: Playboy To Go Public Again. Proving there’s life after bankruptcy. They’re doing it through a blank check public company.

4. Gold and silver moving up along with the stock market. Futures up for gold and silver. Gold over $1900 again. Signficant? When gold had its recent pullback it fell back to its 100 day mav. Gold loves the 100 day moving average. If we break it on the downside, it’s down to $1800. $2000, will it break it again? Big thrust in July, top in August and now we’re in an inside bar pattern. Very bullish.

1. While everyone talks about the Presidential debate it really should be about the economic data that is a stand out today. The ADP Employment report for September said that private-sector payrolls were  higher by 749,000 jobs. Then the Chicago PMI for September surged above expectations to 62.4%, expectations were for a reading of 52.0. A reading above 50.0 represents an expanding business sector. So this number was much better than expected. 

2. This Friday the BLS will report the non-farm payroll report so everyone will be waiting to see this number on Friday. Personally, I do not care about the number, but the reaction in the market to the number.  Can the S&P recapture the 50 day moving average? If we do then we can build off of it. Resistance at the 3400 level. Nick is now neutral. Daily chart bearish, weekly and monthly are bullish. Expect the unexpected.

3. Gold and silver down. Good day yesterday so this is a positive. Not a lot to be made of it. Silver weaker. Longer the consolidation continues the bigger the breakout.