Good trade on the open in gold and silver so far…but it really doesn’t matter because tomorrow’s news will dictate policy.
But I need to tell you that if there wasn’t a chance for more QE by Bernanke tomorrow and if we were not waiting on this guy, I would be telling you these things:
Many areas of the market continue to roll over…namely all the commodity areas. The worst of is the steel,coal,metals/mining and the like. On top of that, oil stocks are now rolling over. Due to the fact that these areas were a big part of the recent move up, this bears attention. Also, Mr Market seems like this may not just be a pullback from highs. I was actually seeing a cup and handle on the weekly charts for the markets…and frankly, that pattern is still there….but the market will need mentioned areas to turn around.
I also wanted to mention that as of this second, I consider the action of 8/21 a failed breakout in the financials as they broke above resistance and immediately tucked their tail in. A few are now looking suspect. As far as leading stocks, the good news is that they are just sitting today while the market comes in.
One name recently put on service that is not thrilling is REGN…which had a clean breakout. It is not moving higher…but as long as it holds $140, we will stay with. Use a break of $140 as a stop. Also…TFM reversed hard yesterday on earnings and is following through to the downside. This stock is not on service but WFM is…somewhat of a cousin stock…so we must watch WFM carefully. So far, it is fine.
All in all, I am thinking more defensively moving into September notwithstanding Bernanke tomorrow.