top longs UP today w/ TOTAL returns since 1ST purchase: CLRT 48% CISG 26% FUQI 41% RINO 8% PTI 73% TEN 57% CAAS 20% CAMP 91% DAN 181% FIRE 115% ATSG 136% OPK 31% OMN 38% AEPI 37% AFFX 36% CAR 75% OGXI 49% VOCL 57% VIT 54% SOA 66% KONG 110% VRTU 21%
Coming from oversold conditions in the near term stocks staged a rally on lower volume. Leaders did lead, but then again the overall theme of the day was low volume. This is indicative of a dead cat bounce and the upward movement is lacking any support behind it. Today offered the opportunity to get out of long positions as it appears the market on an intermediate basis wants to move lower.
Jobless claims once again disappointed as claims fell more than expected. Jobs are a lagging indicator of the economy and should be treated as such. However, it does affect the psychology of the trader and any disappointment will drive the bearish view of traders. Looking ahead to Friday's unemployment number it should drive prices, but we've seen all good news being sold off by the market. It would not come as a surprise to see stocks sell off even if the jobs number reported by the US government is better than expected. Remember, jobs are a lagging indicator and will peak after the economy turns around.
More to come later, but today certainly felt like a dead cat bounce that sucked in the dip buyers and allowed an opportunity to exit struggling longs.
YouTube video for SILV/FREE subscribers: I am currently away from my home office with my video software and hardware as I am on the Big Island. Video commentary will be back after September 11th. I am still updating the new longs, new shorts, and covers/sells. So make sure, if you are a subscriber, to check back in those areas to see my updates. Aloha and thank you for being patient with me while I am away on vacation. My last vacation was to NorCal back in November 2007 so it has almost been two years since I have been on vacation. If you really really need to get a hold of me send an email to firstname.lastname@example.org and one of my assistants will get it to me. Aloha.