The (short) week Ahead - August 6th

Short 4 day trading week is under way.  I totally missed the action Friday heading out for our meet, but what I saw when I got back was good.  My short performed well, and my recent long buy IMAX just fell less than a 1%.  And it's nice to see my longer buys were down less than the 2.5%  the market drop.

The bigger percentage drops of the IPO/hot stocks that I follow paint a sign that the market looks like trouble is ahead for at least the short term.  And this time of year is seasonally a weak period until the second half of October..so until Bernanke announces some stimulus deal, I think the downside is much more likely than upside.

Read the week ahead Trading Radar 

If the markets are starting to fall off....look for oil to sell off hard with the markets again.  I think I'm going to pull out of my NOV long term stock this week as I feel I could get back in a better price in the next few weeks.  The OIH looks week and sub 120 appears to be in it's future.


***At 127.70 at time of chart posting since charts auto update***

On the long side, Gold seems the way to go, after a gap up and closing a 183 on Friday....a move towards 187 and possibly 190 looks pretty favorable and a pullback to 180 closing the gap would be a good buying point:

***At 183.24 at time of chart posting since charts auto update***

I also offer up one of my favorite defensive plays..without being a short...the LQD.  Investment Grade Bond Fund with a 4.5% dividend and doing great during the equity sell-offs.  Currently at $112.69.


***At 112.69 at time of chart posting since charts auto update***

Long day and long run at practice today around the trails.  Scary to think that a windy 70 degree day feels chilly.  It may be nice for working out, but I still love the heat.  It's late and I plan to sleep through the first half hour or so of the market tomorrow.  I know most traders get up hours before the market and do readings/charting/whatever, but that first half hour is a terrible time to trade unless you're a daytrader and try to fade the opening moves.  I have no interest in that and I like to check things when the initial panic/euphoria has subsided.  They say all the amateurs trade the open, while the professionals trade the close.  I'll try my luck in these markets by siding with the professionals.  Happy trading!