Friday, July 13, 2012

Friday the 13th, 7/12

Little rally in the stocks today. Volume light overall, but the buying volume much heavier than the selling volume. Stocks rallied strong in the first hour on news that JPMorgan didn't lose as much as some had feared in the trading debacle of late. So the market rallied on news that wasn't as bad as expected. Volume strong in the morning, a mid day sideways motion with very low volume. Tells me that there aren't so many waiting for ANY rally to sell into. A positive sign. Then a breakout to the upside at the start of the last hour, didn't go far, but when some volume selling came in it was met with volume buying. As if big buyers looking for volume to buy into..... either shorts covering(most likely) or ....
The move made the chart look good!

A thought occured to me. There has been a good little rally going on the the grains due to the drought in the midwest. I wonder if a food inflation could cause a general inflation in this day and time????
And along the same lines. What if global warming is really taking effect. The impact on global food production could be severe.... Another '70's commodities rally from another cause....??

Just thinking.
Some charts:

And I noticed this little chart of a gold company:

Usually a pattern like the weekly above breaks down in a big move. Sometimes up in a big move.
Gold has the same pattern. A move either way could be the start of something big.

Control risk.

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