All good things must comes to an end, including 40 - 60 point ranges in the SPs. After all, Friday's range was only a paltry 24 points. And, already everyone is whining about the light volume....sheesh! What does one expect for the last two weeks in August? - traditionally the doggiest weeks of the year...
The SPs tested the lower end of their range for the year, the Yen hit a major upside objective as carry trade unwinds tried to get out the door at once. Beans down 50 cents in one day? Silver down a dollar in one day? No wonder everyone beat it early to leave for the Hamptons last week.....feels like everyone is taking a long vacation to regroup.
The sharp downflush shook out the longs and the even sharper rally last Friday definately took out the shorts. After such extreme movement and the passing of options expiration, open interest and volume would be expected to be way down. Some players are still standing in the dust, some are waiting ( a bit early) to see what the Fed's action in September will be, Bernanke speaks this Friday and we got a three day holiday weekend coming up. Not a whole lot to be excited about....
Have you noticed that there is a group of shares that is not far from all time highs? DE (yup, back up there), PG, FLR, ITW, MHS, NVDA, RIMM, TJX, PEP, GR, K, BAC, NOK, T ..... What? subprime does not hit telephones?
You know a nice intermediate term bottom was put in when you start seeing links like these! But, just because a market puts in an intermediate term botton does not mean that it will then hit new highs. Even a few steller stocks can't make up for the damage that was done. However, here's one for you:
FXI the moral of the story is, never say never......