Index Indicators still Positive, But
Source: http://fastswings.com/FastSwingscom/tabid/518/BlogId/25/Default.aspxPosted on Thursday, August 21st, 2008 | In Market Commentary
Index Indicators still Positive, But
This has been a very difficult week for stocks and Thursday is looking to be another day of negative movement in the indexes. The index indicators are still showing a positive bias but with this weeks action they could signal a hold instead of a buy today or tomorrow.
Oil, Gold and Commodities
Oil (USO), gold (GLD), and other commodities such as coal (KOL) and grains (MOO) are doing well today as the dollar (UUP) has fallen. This is a problem for the stock market as the price of oil falling has led the markets higher recently despite not the best earnings news.
Financials Again
When everyone is hoping the credit crisis is behind us, it seems like the financial story will not end. Freddy Mac (FRE) and Fanny Mae (FNM) are having a terrible week and other financials like Lehman Brothers (LEH) and Merrill Lynch (MER) are also suffering due to bankruptcy and solvency rumors.
The Trade
If you got rid of your shorts and were starting to build long positions on my previous recommendations, move to a heavily weighted cash position until the indexes signal a stronger uptrend or reverse and signal a selling situation.
Last 5 posts by Steve Patterson
- Short the United States Oil (AMEX:USO) ETF - November 6th, 2008
- Avis Budget (NYSE:CAR) and Rental Agencies All Fall - October 28th, 2008
- Freeport McMoRan (NYSE:FCX) - October 21st, 2008
- Abbott Laboratories (NYSE:ABT) - September 24th, 2008
- American International Group, Inc. (AIG) - September 12th, 2008
 About Steve Patterson (http://www.fastswings.com/)
Steve Patterson is a trained software engineer with an engineering degree in computer science and a MBA from Capital University in Columbus, Ohio. He has been an active trader of stocks and options for the past 10 years with a focus and technology and large cap stocks. In addition, he is the editor and one of a number of writers on several web based publications that he owns and operates. |
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