http://www.option-letter-daily.com Daily Commentary from Professional Traders Fri, 30 Jul 2010 04:00:00 +0000 http://backend.userland.com/rss092 en The strong July rally has run into stiff resistance. It is now important to distinguish between a possible short-term overbought correction and an intermediate-term sell signal. $SPX is the key indicator at this time. It hasn't been able to get through resistance at 1120, and is now undergoing an overbought ... http://www.option-letter-daily.com/2742/options-news/.html Dow down 39 yesterday. Gold plus $2. And the noose tightens on Bernanke’s neck. As of this writing, Wall Street is still in bull mode. Can you make money by joining it? Maybe. Is it worth it? Probably not. If you do decide to play the game…just be sure you ... http://www.option-letter-daily.com/2741/options-news/.html Yesterday, the rally on Wall Street slowed down a bit. The Dow rose 12 points. Gold had a bad day – down $25. We had guessed that gold would be going down. But it is still too early to detect a real trend. For the moment, the financial markets and ... http://www.option-letter-daily.com/2740/options-news/.html We have to be impressed with the market's resiliency today after hitting new recovery highs, because weakness thereafter has been very much contained, at least so far. That said, however, I am "concerned" about the "trap-like" pattern that has developed in the hourly Volality Index (VIX). Let's notice that the ... http://www.option-letter-daily.com/2739/options-news/.html There are two major schools of thought on what is coming next…and two renegade, home-schools too. There are those who believe we have a recovery…though weak…that will continue and eventually bring the economy back to health. This is the line of the Obama Administration and most mainstream economists. Then, there ... http://www.option-letter-daily.com/2738/options-news/.html Unlike my partner I am no foodie. I don’t know the coolest new bistro in town and I never consult Yelp for my dinner selections. And although I like a fine meal once in a while and can cook a few Italian dishes with the skill of a pro, I’d ... http://www.option-letter-daily.com/2735/options-news/.html The debate over whether we are in for inflation or deflation was alive and well at the Agora Symposium in Vancouver this this week. It seems that not everyone is ready to join the deflation-first, then-inflation camp I am currently resident in. So in this week's letter we look at ... http://www.option-letter-daily.com/2734/options-news/.html The markets appear to be very nervous in general and particularly nervous about the EU stress test results, which have pressed the euro lower versus the U.S. dollar, which makes sense, but also has been accompanied by a sell-off in spot gold from $1204 to $1190. The gold sell-off does ... http://www.option-letter-daily.com/2737/options-news/.html “You can take your loans and shove them,” the Hungarian economic minister, György Matolcsy, did not say. But that’s what he was thinking. Watch out. The Hungarians are trendsetters. They ran a budget deficit of 9% of GDP back in 2006. They got a $20 billion bailout in 2008 and ... http://www.option-letter-daily.com/2736/options-news/.html The broad stock market has moved back and forth in a fairly narrow range, but has traversed the range rapidly. The most recent range has resistance at 1100 and support at 1055 or so. A breakout of this range should produce a quick move to the boundaries of the wider ... http://www.option-letter-daily.com/2733/options-news/.html