Well it was an interesting day to say the least.  Uncle Mike had noted the 1302 area to go short for a swing trade but saw a better risk/reward going long at 1292 and Mr Market kick me in the pants.  There was a long grinding market all day, low volume and starts and stops with no real good risk/reward places to join the trend or go counter trend.  We were stoped out on a  trade with only a 1 point

ES (E-Mini): bullish engulfing candle.

In an attempt to stave off inflation, the Federal Reserve as enacted policies that create commodity bubbles and devalue fiat currency.
 

August is historically a bad month for resource commodity stocks, but if you can ride it out, prices are sure to rise once again.

Stock indexes gapped up on plunging crude oil and relief that the hurricane did not cause as much damage as feared. However, shortly after the open the indexes failed to push higher. All buying power seemed to exhaust quickly. The Nasdaq started to reverse into the red first, followed by the S&P. The stayed in the green for much of the session, but finally succumbed. I look at the S&P etf chart to the left shows how difficult this market has been to trade on a short term basis.

Stock indexes attempted to rebound from what was becoming an oversold condition. The Nasdaq 100, shown here with the QQQQ etf, tried to reject the spike low from July 15th. The open of the day session was right on that low and price tried to move lower. After spending some time in that new low area, prices started to reject the new low and a move began to retrace back into the lows of yesterday.

Stocks started the Sunday evening session as well as the open on Monday with a sharp sell-off, with the Dow down over 300 points. Continued worries over the financial sector continues to dominate the news. Rather than rehashing the news I’ll just show a chart. A chart is more useful to analyse than blaming greedy speculators, the Fed, the president, or a vice presidential candidate. The chart to the left is of the eMini S&P futures. The major support was at the July 15th lows.

ES (E-Mini): harami.

The S&P,NASDAQ and Dow closed much higher!  After a strong down day on yesterday, the markets posted supply and demand pictures that imply a turn or at least a pause while it ponders the situation.

With the recent turmoil in the stock market, gold has reversed its course and is now entering another bull run.

Well I guess I will be a parrot again…. Another wild day on Wall Street. We had a bullish engulfing candle put in today on the Dow. This does  bodes well for tomorrow and prices would tend to extend in the same direction based upon this bearish candle formation.