As we approach the end of October, the market is actually starting to show some bullish signs. For example, it shrugged off news of lower GDP, which was actually not as low as expected. It’s a good sign when the market looks at the silver lining in a cloud, especially considering the action we’ve been seeing lately.

It was also a great day for the Watchlist. Both stocks from the Watchlist made very nice moves, as well as one posted here last week.

The first is RAH, which triggered late in the day. Volume was a little light for the day, but the breakout did have some volume behind it.

rah3.jpg

The second one, NDN, was tricky. I mentioned that it was one o f the best charts out there. It gapped up above the entry point, with a wide spread, but then steadily moved higher for the rest of the day. It’s still a great looking chart.

ndn1.jpg

This stock wasn’t on the Watchlist for today, but it was last week. Honestly, I almost posted this chart last night. Fortunately, I was watching it today. It made an fantastic move today.

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Friday is of course the last day of October. Good riddance! October is historically the worst month for the market, and this was one for the history books. If history continues to hold up, then the next couple of months could be pretty good for the market.

I am still cautious here though. The market is consolidating here, and could easily break lower. To be honest, I am encouraged by the last three trading days, and some nice charts are starting to show up, something we haven’t seen in a long time.

Trade Ideas for 10/31/08:

None

Good luck and good trading!