August Rush

ford salesNo signs of breaking for the rally today as Monday's trading closed up with yet another 100+ day for the Dow. Strong performance in commodities helped lift the markets today as Bull's fears of a slow August beginning have quickly vanished. Sure, as always the green markets were once again bought on very low volume, but somehow there continues to be buyers.

As I mentioned would probably be the case on Friday, autos received a lot of today due to early earnings reports, in which showed Ford actually turning a profit for July. This is no surprise due to not only the billions of dollars that was given directly to them from the government, but also from the "cash for clunkers" program that has no doubt caused for a lot of transactions in automobiles. I'm sure that will also resort in more credit defaults as well.

Historically, August has been a month of "moderate" gains for the market. However, during times of rebounds, it has shown in times past to produce quite higher results. I can't say I believe that this will be the case for this August, especially having our markets already in a considerably overbought position. Also, something interesting to note is that this Friday will be the exact same duration from when the rally began during the Great Depression and when it started to crash again. Even though such coincidences most likely bear little significance, the similarity is interesting and worth noting. If markets are crazy enough to rally yet again tomorrow, I will definitely be pulling on some short positions. I expect to see a rather strong day of selling this week, especially as profit taking kicks in. Happy Trading.

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  1. Anonymous Says:

    you might have lost so much on SRS.Do you still buy SRS?


    Nice looking car.