Monday, September 21, 2009
Weekly Watchlist 9/21
The dollar is still looking weak but the possibility of a bounce should be watched as its oversold and the Fed speak and G-20 meeting could ignite some defensive rhetoric from officials. Gold looks ready for a profit taking perhaps if it can't hold the 1005 area.
The SPX is pretty much in a vacuum zone overhead with the low supply area's from last Fall's crash giving us a good chance at seeing a rapid rally to the upside. Last Fall we saw a panic selling for fear of the unknown. This Fall we could see the markets race right back to 1150 or so as a panic buying comes into the markets, for fear of missing out on the upside starts to set in. Human emotion is a funny thing isn't it?
This is a momentum driven market right now and it has been for several months. These types of markets usually don't top out with a surprise crash or something. They top out with either a blowoff top on huge volume or a long gradual rolling top that plays out over several weeks or even months. We have seen neither yet. Trade safe.
Longs>> CCJ, JOSB, KKD, DE, NTAP, STT, SHW