Market Commentary – July 21st, 2011

The overall market finished Wednesday slightly lower.  Oil was higher by $0.54 to $98.40 per barrel, and Gold was lower by $4.20 to $1,596.90 per ounce.

A Few Thoughts Before the Open:

  1. In looking at the charts of the heavy volume stocks from yesterday’s trading I noticed that very few have a clear trend patterns of either to the upside or downside.  Of those that do,  the majority still have negative chart patterns.   This is not really a positive sign with respects to a market rally.
  2. Based upon the news reports I am seeing it doesn’t look like the Greek crisis is resolved.
  3. The Debt Ceiling plan proposed by the Gang of Six may not be the solution it is initially thought to be.  It looks like the plan is skimpy on details;  but what it looks like it is lacking in budget cuts and heavy on taxes.

I just don’t see any reason for the market to rally today.  I am looking for the market to move lower; and as a result I am looking for a stock to short and sell puts against the position.

www.sterlinginvestments.com

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.