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I have been on vacation the past couple of
weeks. The comments I have seen on $4 gas doesn't seem to mean much when I
saw gas at $4.99 in Taos, NM. Crude jumped on the news that $150 crude
would be here by July 4th and that Israel would take out Iranian nuclear plants
if no one else would. Costs are rising and soon prices will start to
spiral higher followed by wages. The government refuses to strengthen the
U.S. Dollar so higher prices are inevitable as companies are finally going to
have to raise prices. Autos higher because of steel costs, everything
plastic and computer and LCD screens because of crude prices. In order to
maintain profit margins prices affected by rising commodity prices will have to
go up in price.
Fridays action reminded me of the Friday prior to
Black Monday. Shorts covered on the drop looking for a bounce that never
happened. Traders that sold calls and puts to become gamma neutral were
caught with their check books open and stripped and ending up deaply in
debt. So much for standard deviations. All of the indices that
I have looked at over the week end have downside pressure being applied to the
daily price charts. Gold and crude both have upside pressure.
I have posted my analysis on the NASDAQ, INDU,
S&P index, Gold and crude with charts on the web site for those that are
interested.
Good trading this coming week.
Just one man's opinion.
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