Daily Wrap

First with our second earnings play, ABM reported tonight with a mixed report, revenue fell 17%, they guided to the low end of expectations, net income beat by a penny due to some 1 time charges, other then that, nothing too spectacular, but they did trade down over 2% in after hours ending AH -1.71
5 and we'll see what tomorrow brings.

As for FX, the Euro had a bad day.

 Here's what the Euro looks like tonight.

 On a daily basis, important support has been broken which is not good for equities, commodities and most risk assets including crude oil.

 ES is showing a negative divergence right now in to flat trade.

As you can see, ES opened above VWAP but couldn't hold it, there was a brief pop above right before the 2:15 F_O_M_C announcement and then ES just totally lost VWAP in bearish trade.

I have been tweaking the scan I recently wrote and there are some new rules, but I'm coming up with many of the same candidates such as AMZN which was highlighted today.

 My highlighting AMZN had nothing to do with the scan, it was coincidence that it appeared in the scan with EMC as well below. The little hash mark in the white box is a signal for a short position or at least a candidate.



The new rules are made to avoid volatility associated with tops and get in to some trades ready to trend where the money is better and easier. The rules are the stock must have been above the 200 day moving average, fallen below it and then rallied back up to it, this is the volatility that occurs with the break of a top, so we are bypassing that volatility and opportunity cost, then the rally up to the 200 must fail and the stock must make a 2 week new low showing it is moving down in the right direction. 3C has to be negatively divergent on the daily chart and the 200 day moving average needs to be heading down which signals a primary bear market. I came up with quite a few candidates and it's just a matter of finding the tactical entry, I think this will be an excellent system, especially now that the market looks set to close the divergence seen in the credit/risk indicator dislocations.

So I may need to set up a new spread sheet or something to give you the list of trades to keep on the radar.

Other then that, the F_E_D disappointed today as did retail sales, showing that Black Friday was as I witnessed, retailers selling volume at a loss or very low margins. It's not looking good for a Santa Claus rally, but we still have some end of year window dressing to deal with which could go either way.

You saw GLD's analysis today and the possibility for a bounce being the top just broke, with the new year coming so are mutual and hedge fund redemptions, to meet those redemptions, the only profitable trade many of the funds have on the year, GLD will likely have to be sold so the timing of the earlier analysis and that fact may work in tandem setting up a possible short in the next few weeks.

Other then that, today was quiet with only Merkel's announcement that the ESM will not be increased and of course some violence in Belgium.

We will see what tomorrow holds, but there's a lot of disappointment in the market right now.