Index Indicators still Positive, But
Aug
21
Written by:
8/21/2008 10:00 AM
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.
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.