While I took a few stops, I am still left with a fair number of positions that held their Thursday lows. This breakdown in the indices is ugly though and had me thinking pretty hard about just going flat into tonight. Not going to do that but I am impressed at how powerful the urge is even though my stops are near enough that it doesn't really matter.
Some of my anxiety stems from the give up in steel and copper stocks. Those charts say maybe the inflation fears last week were just a big headfake. I would watch Phelps Dodge (PD) around the 100 level to see whether this breakdown is the real deal.
Despite that weakness many of the gold and silver stocks I watch are still slighly green. That stands out a bit in the face of dollar strength and general weakness. My interpretation is to watch the dollar to see if they are leading a short-term trend change.
No comments:
Post a Comment