Long DJIA 11048 activated, and in floating profit of +7 points, however, after 30 minutes, it became -20 points.
Since I have already decided the trading plan, be it triggered stop loss or close position this morning with whatever profit or loss.
This morning looking at my Long, profit +70 points, and I closed the position. Follow the plan, and believe this is the best trading plan I can do for this week.
And once again, DJIA has proven its BIG Swing for 3rd consecutive days in this week.
US Stocks Pare Losses; DJIA, S&P 500 Lower As Energy Sector DragsSource: Dow Jones Newswire http://www.djnewsplus.com/article/0,,SB128817530572748371,00.html?mod=article-outset-box
By Jonathan Cheng
NEW YORK -- U.S. stocks pared their losses to close near the day's highs, as investors grappled with shifting expectations for a major bout of easing by the Federal Reserve to stimulate the economy.
The Dow Jones Industrial Average declined 43.18 points, or 0.4%, to 11126.28 while the Standard & Poor's 500-stock index lost 3.19 points, or 0.3%, to 1182.45. The Nasdaq Composite added 5.97 points, or 0.24%, to finish at 2503.26. Stocks retraced most of their earlier declines, when the Dow was down by nearly 150 points in intraday trading.
Energy stocks were among the biggest drags on the stock market, after weekly oil-inventory numbers showed U.S. stockpiles of crude oil rising by five million barrels. Exxon Mobil dropped 1.3% and Chevron fell 1% as crude-oil prices fell.
ConocoPhillips fell 1.2%, despite posting third-quarter earnings that more than doubled, buoyed by higher commodities prices and improved refining margins.
Oil prices also were hurt by the rising dollar, which hit commodity prices across the board. Gold fell to just over $1,320 an ounce, while copper tumbled 2.3%. That sent down materials and industrials stocks, the two worst-performing sectors of the day.
Merck dropped 1.7% to lead the decliners on the Dow, while Alcoa shed 1.3%. Bank of America gained 2.1% to lead the Dow industrials as well as a broader recovery in financial stocks after concerns earlier this month about mortgage foreclosures.
The declines came as investors tamped down expectations for a "shock-and-awe" approach by the Fed to help the economy, a strategy the central bank had turned to during the financial crisis, in favor of an approach that allows them to adjust policy over time as the recovery unfolds.
Expectations are now increasing for the Fed to unveil a program of U.S. Treasury bond purchases of a few hundred billion dollars over several months, an approach in contrast to the central bank's purchases of nearly $2 trillion of bonds during the financial crisis.
"The Fed was out there sending out a message," said Jay Suskind, senior vice president at Duncan-Williams. "It was a cue for the market that maybe from a commodity and dollar destruction standpoint, those trends went too far." Suskind said the sell-off was a natural one that came with "no panic," as investors came to a consensus that expectations for the Fed, as well as Tuesday's congressional elections and the generally strong earnings season, have been more or less priced into the market.
The Fed's apparent attempt to back away from "shock and awe" helped the dollar bounce back against most of its major rivals. The Australian dollar tumbled 1.5% against the greenback, while the dollar rose to 81.69 yen, from 81.50 yen late Tuesday in New York, and the euro fell to $1.3767, from $1.3852.
The benchmark 10-year Treasury fell, pushing the yield to its highest point in over a month, at 2.712%.
The concerns over the Fed came amid modestly positive data on durable-goods orders and the housing market.
U.S. manufactured durable-goods orders posted their biggest rise since January after a spike in orders for civilian aircraft and aircraft parts, an often volatile category. Overall, durable-goods orders rose 3.3% in September to a seasonally adjusted $199.16 billion, more than the expected 2.5% rise.
Meanwhile, new-home sales in September continued their rise from a rock-bottom level, increasing 6.6% to a seasonally adjusted annual rate of 307,000, more than consensus estimates of a 4.2% increase.
"The durable-goods number, if you strip out aircrafts, wasn't a great number," said Michael Shea, managing partner of Direct Access Partners, who added that the home data reflected a weak housing environment.
Shea said the bounce back in financial stocks came as investors moved to put questions about mortgage foreclosures in the past. "A lot of rational people were coming out, saying let's not throw the baby out with the bath water," he said. "It's not as dire for the share prices as we would have thought, and we're finally getting that."
Among companies reporting earnings, Whirlpool fell 4.1% after the appliance maker's profit fell 9.2%, though sales in Latin America and Asia showed strength.
Sprint Nextel slumped 9.9% after the telecommunications giant said its loss widened, although the company reported its biggest net subscriber gain since 2006.
Comcast gained 3.2% despite a decline in profits at the cable provider, which suffered from a summer slowdown in subscriber growth and costs related to its deal for NBC Universal weighed on its performance.
American depositary receipts of U.K. drug company GlaxoSmithKline fell 0.8% after it agreed to pay $750 million and plead guilty to a criminal charge to settle a U.S. government investigation of manufacturing deficiencies at its former plant in Puerto Rico.
Ford Motor, which posted a 70% jump in third-quarter profit Tuesday, fell 0.9%.
Procter & Gamble edged up 0.4% after the consumer-products company posted strong volume gains, though quarterly earnings fell 6.8%.
American depositary receipts of German software maker SAP dropped 5.2% after quarterly results fell short of expectations, and the business-software company was hit by legal provisions in connection with a $2 billion lawsuit brought against it by rival Oracle.
My Trading Plan for today:
DJIA Long
Entry 11051 SL 11007 TG 11200
DJIA Short
Entry 11245 SL 11289 TG 11051
Related: My Weekly Forecast on DJIA for 25 Oct 2010
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