19 August 2008

Those Lazy, Hazy, Crazy Days of Summer


The market has been in a "back and forth" pattern in this light volume August market. Many senior traders and managers are taking their last vacations for the summer.

The trading programs like to churn the market back and forth, taking down the undercapitalized speculators, probing for signs of weakness among the funds.

As we are on key support we'll see if they can bounce it tomorrow. If they cannot then things may get interesting quickly, probably next week. We'll assume that something big is boiling over behind the scenes and the calls are coming in from the watering holes in the Hamptons.