We reached some decent resistance in S&P at the 1210/1211 level . 12,425 target hit as well in the Dow Futures.
Not saying the top is in, by any means, but i think we are over done a bit on this “relief” rally.
August, as usual, was a month where the program traders take advantage of the market’s dirty little secret. 1/2 of Europe is gone on vacation. Traders and managers who are up money on the year after 6 months are taking a chunk of vacation time off as well.
Generally, the only people active in August are large spec traders who take advantage of the thin markets and run circles around the herd.
My advice, as always is to avoid August and avoid December. Those two months are times of less liquidity, making markets more vulnerable to the program computer traders and their “disruptor programs” where worms run and look for stops to set off above and below the market.
Your average person has no idea that this is going on. But it is.
Ok, Grain, I’d be heading for the exit on longs in corn for the next few weeks. In other words I’d be looking to sell rallies.
In the beans, I like buying breaks with support at 14.10 in SX.
Currently, I’d be taking a spec position as well in gold, buying some out of the money puts. The fact that every other commercial I hear on the radio is touting gold makes me want to fade those popular emotions and delusions.
That’s all for now.