DJIM #31 2008

The last five sessions, no matter how seemingly exciting if just looking at the daily numbers, Monday through Thursday specifically, proved to be nothing more than a glance into summer trading.   The wild fluctuations up and down are just a symbol of the low volume.    A possible positive was the up days were on bigger volume.   As we head into August,  this action will continue until there are signs of either institutional buying or selling.    Maybe we should just be happy we don't feel the YTD figures of the DJIA/ NASDAQ/ S&P, -14.6%, -12.4%, -14.2%,  respectively and the 463,000 job losses YTD so far affecting our accounts.   Of course,  we all know why and that is simply because of the commodity trade we've been tracking all year.    A potential upturn from early in the week was thwarted on Thursday/ Friday as economic data took over.   Maybe this was the head- fake possibility we discussed coming to fruition, but the action is probably nothing but hesitation before we go higher.   It could have been worse considering all the blows from eco data,  this could also be a positive.   At least, this week, we have little to worry about in the form of data and the sentiment shift witnessed early last week may have a chance to take over again.  

Our trading strategy is the same heading into the week,.." Simply, stick to the stocks you know/ traded or look for a set up elsewhere for a quick trade...". Keep trades on a short leash and don't have too many to manage.  One potential trade in MEE noted for Friday is truly indicative of short leashing as it ran from $75 in premkt to $82 quickly before slipping back to $75, end of day.    Anyways,  something has to give this week and it wouldn't be a surprise to see the only worthy groups lead.    Be patient.    Last week, the coals, ag's, steels proved this is the only place money should be flowing if basing your decisions on who's making money and will continue to in the quarters ahead.