Stocks had a nice rally of Friday as the Eurozone gave indications of papering over their debt problems for awhile. Commodities did well. Oil up over $7. A big move. Watch what a market does after a big move. That is a tell for the future. Will traders sell quickly, or will they be content to hold long positions? Sentiment.
Does anyone remember that call by Goldman Sucks to short the market last week? Why would a huge firm like that come out with a short term call like that? Were they short and needed to cover in a hurry? That seems the most likely explanation to me. A firm of their size cannot trade such a short term move unless there are traders on the other side of the trade.
In any case: I am bottom picking in the energy and steel areas. NG is bottoming?!.....
signs of buying in steel....
US Dollar weakness. Did you spot that little "rising wedge" in the UUP dollar index last week?
A rising wedge on declining volume is often followed by a drop down...... Look at UUP.