Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Tuesday, August 17, 2010

Back From the Beach

The beach was just beautiful, and while I am back and busy getting situated, I did manage to take advantage of some nice trading opportunities while away. After a sharp shake-out from overbought conditions that we said was a possibility, the major indices moved to short-term oversold conditions and are trying to turn back up. At this point, I still think that a large basing pattern has been in the works since late spring/early summer and that the July low has a good chance of holding. Time will tell, of course, and additional near-term volatility would not surprise me. Alternative energy and agriculture are the sectors that I continue to find most exciting, but it will be important to watch for the emergence of new leaders as considerable sector rotation seems to be unfolding. Precious metals are also outperforming after a recent correction, and with favorable seasonality ahead of them as well, are looking quite good. Silver, in particular, looks increasingly compelling. Let's see the $SPX and $RUT, both of which are nicely positioned for a bounce after Monday's action.

Trade well.

-- Brinkley
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