Choppy Time Coming Up in Stocks
On the negative side the move below 1143 on the S&P points to lower price levels. On the positive side the market believes that it found the culprit, A Kansas based Mutual fund that was executing a hedge program. I don’t think that means anything, the fact remains that the speculative players were all on the same side of the boat when the mutual fund hedging pushed through the speculators sell stops. I would bet the hedge fund sold little or nothing between 1143 and 1066, that special price area was no doubt inhabited by the crazies.
Commodities remain under pressure and this may be the week that the dollar /gold relationship breaks apart and the dollar starts to show real strength.