Oct 28, 2004

On the front burner

So today's trends into the open look like bonds will continue to weaken, oil (and oil stocks) will continue south, the dollar consolidates yesterday's gains, and stocks look to pull back.

I would guess the stock market stays range bound through the election and for the most part it is time to be building inventory on the dips. The financials, however, seem like a good sector for shorting but need to work through an oversold condition first. Not so much urgent today unless something you want to buy falls out of bed. The DXY should make it back near 87 so buying the dollar on dips probably makes some sense too. Metals (and metal stocks) are continue to fall this AM and some of them might make good purchases shortly when they are sitting at the uptrend or on a moving average. Copper stocks are better positioned for accumulation over the next couple days as they are oversold and near support.

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