Friday, August 15, 2008

Oil Falls, Market Rally and Pullback, Options Expire Today

10: 48 ET DJIA + 54...SPX +4...Nasdaq +5...RUT +0.57...SOX +0.25...Oil -2.91 Oil falls anothe $2 plus Friday morning...stocks rally, pull back and then find support...all in the first hour plus on Options Expiration Friday...volatility or trading range that is not uncommon for Options Expiration...expect more of the same today. With oil down airlines are taking off this morning...consistent with our audio commentary last night. Steel, Gold, Ag-related, Coal and oil stocks are moving down again...exactly what should be expected with oil falling and these stocks alreay in strong down trends for the past four weeks. Moving Up: FSLR, MA, PCLN, ESRX, UAUA, SINA, LEH, Moving Down: CF, POT, MOS, X, ANR, BTU, CNX, AGU, MON, SCHN, DRYS, MEE, BUCY, CLF, USO BIDU, STRA, FWLT, IPI, NUE, NIHD, MTL, AMZN, SOHU,

1 comment:

Anonymous said...

Hi Dave...

Could the pattern developing on the SPX be considered a "rising wedge" (bearish)? If so, what signal would be necessary to confirm that it is a continuation of the downward trend, and how would you measure it?

Thanks,
Fulvio

P.S. Great to see you in Vegas!