The fear was that Rita would be another Katrina but it turned out to be far less. Midday Thursday and again on Friday the market began to sniff this out and turn north as a result. The technical breakdowns were the first in a long while and now an attempt to correct them is in process. It will take a lot to do so as the damage was not minor.
Unless you took the gamble in front of the weekend, this gap up offers little to do. Not sure I want to buy it immediately but have a sense that it's going to carry today. I'm not enamored about the long side of the market but I recognize that it's month end, quarter end and the markets are short term oversold which all leads to the potential for some sort of rally. The question is whether it turns into a two day wonder or something more like a week or two. I will look for a long entry as a trade but I'm not going to rush anything.
The oils and metals are selling down today. Our short GLD may finally perform this week. The setup is still there. I do want to average back into the metal stocks but I'm not in a big hurry as they probably have more work to do to the downside.
Unless you took the gamble in front of the weekend, this gap up offers little to do. Not sure I want to buy it immediately but have a sense that it's going to carry today. I'm not enamored about the long side of the market but I recognize that it's month end, quarter end and the markets are short term oversold which all leads to the potential for some sort of rally. The question is whether it turns into a two day wonder or something more like a week or two. I will look for a long entry as a trade but I'm not going to rush anything.
The oils and metals are selling down today. Our short GLD may finally perform this week. The setup is still there. I do want to average back into the metal stocks but I'm not in a big hurry as they probably have more work to do to the downside.
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