Wednesday, August 12, 2009

Where Do We Get Off?

Well at midweek and after the Fed meeting the markets are def on the roller coaster to crazy town! The pattern does tell me we could rally into the weekend as it seems too many trader got short too fast after Tuesday's selloff. At the same time the market looks vulnerable to a pullback if it can't breakout of last week's highs. If any big move is made I bet it goes higher simply because its August and the volume is light plus the stops just overhead could provide the fuel.

The dollar surged shortly after the Fed today but then pulled back to closed flat. It will be interesting to watch the Euro and see if it holds 1.42 here. If so, then it's free to test the 1.43 level and stocks will move higher accordingly. Copper has been strong and if oil gets going above 71 this market could add another leg up into the back half of August. We shall see.

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