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.