Tuesday, August 30, 2011

Nice continuation

In the morning, the market sold off due to worse than expected consumer confidence numbers. The sharp drop was bought quickly and S&P rose about 20 points in 2 hours time. The 1215-area was resistance intraday, but was briefly taken out in last hour trading. However, a late sell-off brought us back near yesterday's close. Although the volume was better today, a bearflag on the daily charts is still possible (see chart of DIA below).

While the indices didn't end that much higher, many leading stocks performed outstanding. To name a few: JVA, SINA, MCP, JAZZ, GMCR, BIDU.

Meanwhile, gold and silver were up nice, just like oil. So gold is moving towards last week highs, but on lower volume. This can turn out to be a double top, but a long consolidation is also a possibility. To me it's a no-trade at this point, going long here is chasing price (you basically missed the big move), going short maybe way too early! 
Better look for the next opportunity. Copper is doing well the last few days. Cotton also starting to look interesting.

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