Friday was Day #2 of our most recent attempted rally. A tame CPI report helped boost stocks throughout much of the day. The hiccup of the day came starting after lunch where we say selling hit the markets. Many market pundits, including RevShark were calling for the demise of the morning rally. Intraday trading like this is dangerous and RevShark and other s were proven wrong. Stocks were able to gather steam and close on the highs of the day. Extremely bullish movement by the markets, but the caveat was volume. Volume declined crossed the board, lessening the impact of the bullish price action. Tuesday will market Day #4 of the attempted rally and where we’ll need to see confirmation of this new rally attempt.

Crude Oil, Natural Gas, and now Agriculture and Grains are joining commodities that are continuing their recent uptrends. The recent move in crude oil certainly shocked the markets, I am looking for crude to pull back a bit further. I see Agriculture and Grain commodities resuming uptrends as flooding in the plain states become more of an issue for crops. This will spark more interest about inflation and will set a laser precision focus on what Ben Bernanke and Company plan on doing to combat the issue.

We continue to be in libo with this market. Again, Cash is King and protecting capital is my number one job. This market isn’t going to offer up Monster Stocks at the moment. I am waiting for a follow through day before I get on this market’s bandwagon.

Enjoy your weekend.

Market Speculator

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Last 5 posts by Market Speculator

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