A Knee Jerk Week
This week has seen someÂ knee jerk reactions to the recent selloffs in commodities, gold, and oil and the bounce rally in the stock market. The most important happening in August has been the bursting of the last bubbles in the series which started with tech stocks in 2000 and ended withÂ oil in 2008.Â Investors can look back at those price levels and marvel, but we are not going back there for a long time in our opinion.Â
Having exited the short commodity and oil positions last week we are content to sit with a modest long position in the S&P 500 and wait for the culmination rally to the 1340 to 1360 area. It is difficult to play the knee jerk action when oneÂ is dealing Â with a dial-up internet connection at the vacation location.
7:36 AM EDT