The pressure on the equity futures has eased quite a bit from last night when they were all down over a percent. Oil is up big still but down over a dollar from the highs seen last night. OPEC talks of raising the quota again. Oil stocks are bid way up this morning and the question is, will they take a fade after the bell. My thinking is that they do and I'll give them some time to do so but, as always, we have to keep capital preservation in mind as we approach the market so a lot of what we do will depend on how the stocks react given their chart patterns. If they start pressing to new highs, I won't be standing around waiting very long.
This is typically a slow week in front of the last major summer holiday. The charts are technically weak here but the 200 day moving averages were touched in the spot market last night and held on the SPX. We are likely to see early pressure continue but given what has come to this market recently, I don't expect the market to buckle and roll over completely. More likely it will bounce instead so it's late in the game to be pressing your short bets. Preserving capital should be foremost on your mind.
This is typically a slow week in front of the last major summer holiday. The charts are technically weak here but the 200 day moving averages were touched in the spot market last night and held on the SPX. We are likely to see early pressure continue but given what has come to this market recently, I don't expect the market to buckle and roll over completely. More likely it will bounce instead so it's late in the game to be pressing your short bets. Preserving capital should be foremost on your mind.
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