Best Q3 for Markets Since 2010

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Broader Market Weekly Performance:
Dow -1.05%
S&P -1.33%
Nasdaq -2.00%
Russell -2.11%
www.BookingAlpha.com

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MARKET UPDATE:
Although markets posted losses for the final week of September, they logged their best 3rd Quarter performance since 2010. Q3 gains for the 4 major indexes look like this: +4.3% for the Dow, +6.1% for the Nasdaq, +5.8% on the S&P, and +4.8% on the Russell.

Markets needed a breather after such a large rally during the last month of Q3 and thus, a slight pullback into the final days of the week/month/quarter. End of quarter window dressing and profit taking were mostly to blame and were largely expected.

Earnings season is approaching but is still a few weeks away. Much of the aniticipated news is now in known and in the market; QE3, ECB bind buying, etc. As a result, last week we stated: "We could see a small pullback first to setup a rally into earnings season. Any selling is likely to be contained and bought near S&P 1430-1440". Our outlook was accurate so far and has not changed.

This week economic data releases will pick up. Scheduled releases include: China PMI, US ISM, ADP, Retail Sales, Jobless Claims, and Unemployment Claims. The first Presidential Debate will occur on Wednesday as well.

We still expect a run for the S&P to 1485-1500. GOOG has taken AAPL's place recently as the darling of the tech world. However, AAPL is not broken, it is simply backing and filling after such a strong run higher. Last week's selling was contained in the S&P 1440 area as expected.

This week a little more selling may occur setting the table for a rally into earnings season. S&P 1420 is a strong area of support and is also the location of the 10 week moving average. Just below lies the 13 week moving average, the 50 day moving average, and additional chart support around S&P 1410. We expect these levels to hold on any further pullback.

We expect a fairly tight trading range going forward as all the anticipation of unknown news is now known (QE, ECB Bond buying, etc). Look for the S&P to trade within the ranges highlighted above for the next couple weeks.

Navigate wisely and stay profitable, my friends. Happy trading!

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BOOKINGALPHA UPDATE:
Monthly Trading Service Commentary:
This week was a busy one as we opened 2 Iron Condors on SPX and DIA. We also opened a bull put spread on IWM which we plan to turn into an Iron Condor possibly this coming week. We received good credits for all the spreads using Nov strikes.

We continue to improve our site functionality and have now listed Open Trades on the website. In a separate window, login to www.BookingAlpha.com and then click the link below to be taken to the Open Trades Page.

Monthly Advisory Open Trades page
*You must be logged into BookingAlpha.com before for the link will work


Weekly Trading Service Commentary:
We opened a new SPX Iron Condor this week as the index held anticipated support and resistance levels. The volatility Thurday & Friday provided the oppotunity to open the spread which expires this coming Friday. The SPX currently sits right in the middle of our Iron Condor strikes making the trade quite comfortable. Support levels are identified in the Market Recap blog post to watch for this week pertaining to our spread.

We continue to improve our site functionality and have now listed Open Trades on the website. In a separate window, login to www.BookingAlpha.com and then click the link below to be taken to the Open Trades Page.

Weekly Advisory Open Trades page
*You must be logged into BookingAlpha.com before for the link will work


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