Overall Market Conditions:    Extremely Choppy Behavior - Caution is Warranted   

The market made a nice move running up into the Fed meeting, yet as often happens, it was “buy the rumor sell the news” and the market suffered a large down day on Friday which was also Triple Witching options expirations day.

It could be that the market is set to retest those lows set back in August which could likely take a few more weeks or more, but it would be nice to get it out of the way before earnings start in the third week of October.

Let’s move on to charts of the leading averages that have various patterns with the Nasdaq 100 (NDX) and Russell 2000 (RUT) showing very bearish Rising Wedges that imply much lower prices in the near term.

Let’s move on to the Shanghai index that is still filling out its Bear Channel pattern that implies resolution to the downside.

My short term trading oscillator hit extreme readings on Thursday which is usually a reduce or sell signal for me. You can find this tool in the chat room running in real-time if you’re interested.

Let’s see some stocks with nothing special at this time though Fitbit Inc. (FIT) is coming off lows on massive volume due to news.

Members on CNBC’s Shark Tank would never invest in a company with market valuation that is 8x revenues, but the earnings are good with lots of room for a quick run up in price. Hopefully some brokerage firm will hype the stock beyond reason and the retail crowd will bid it up wildly. Hopefully is the key word here.

Let’s see a few Biotech stocks now.

As I have noted here several times recently, the market often makes lows in late September or early October. In the meantime I’ll keep my portfolio as close to cash as possible with a few trades here and there.

I hope to see you in my chat room on Monday and back here Monday night.

Daniel J. Zanger