Well, you wouldn't expect this much drama in the month of August!   After all, this is supposed to be a boring month where most people should be out fishing or watching the Olympic games.    So far, we are getting anything but a boring trading month.

Judging from the index action,  it doesn't look like we are done oscillating.    It just appears that there's enough forces and checks that make sure this market doesn't break out heavily into either direction. However, there's still enough drama in this market that doesn't keep this market in place, either.   Yes, we are talking about high drama in the Oil, Financial sector, and now a U.S. dollar rally providing big triple days in either direction.

Has anyone paid attention to U.S. dollar lately?   Perhaps not, but we Canuck traders are especially sensitive to the direction of U.S. dollar.   After all, since our trades are based in U.S. currency, a strong dollar movement plays heavily in DJIM traders' favor.    So ironically, the best trades for DJIM traders last few days was simply "watching" the U.S. dollar ticking higher, against our Loonie!   This is also the point why this market isn't heading down so far this month.  Also, keep in mind a stronger dollar is more beneficial to small caps than large caps.

Basically, at the beginning of this summer, nobody expected this kind of outcome.    We didn't expect oil to be on such a dramatic decline which has dragged down the entire commodity sector.   Also, the weakness in crude and commodity helps to stabilize and strengthen the dollar.    Both are acting as a strong cushion to an otherwise uninspiring earning quarter.    This is where we are today. So be it, as we conclude this situation.

During the last couple of days, we have seen a couple of earning plays that are getting the kind of reaction that remind us of old DJIM plays.   We are talking about ROCK, FSYS, PRXL type of reaction here.  Remember to click Shadowlist link for updates.  Given the sluggishness of commodity market,  it's definitely worth looking at those small cap earnings and away from our commodity plays.    Okay, we don't need  a lot of earning plays here,  we just need a few to get through this month. As more and more small to mid cap companies release their earnings, they'd occupy most of our attention here.      And yes, the above three have moved up to the top of our trading list.   If you missed the initial move,  just remember, the first pullback off these super earnings mover is always a buy for us.