{+++}The dollar had only its third down day in the last eleven, but with oversold sectors like materials, metals and commodities it was a great catalyst to send them higher. We didn’t have any on the list but MEE,XLB and XME were radar names on Friday morning.
The 50 DMA is parked up at around 1106 and the market could sloppily trade up to that level if it wants to. Volumes were unimpressive today and although some of the financials rebounded, they need more time to build a bullish base. GS bounced and so did JPM, but up volume was less than Friday’s down volume. As a matter of fact, it was very boring for most of the day after the action of the first hour as the S&P traded in a about a five point range after that.
I didn’t do much at all today, it’s a new month and my partner Todd and I felt “no edge”, always best to trade light or not at all when you feel that way.
I think the trend is down for now , but we were oversold so we grabbed a bounce, no reason to get long aggressively until the S&P retakes the 50 DMA.
Getting back to MEE,XME and XLB; when sectors turn on decent volume, they usually get legs for a couple of days, so keep an eye on them for further upside. UYM also plays well too.
Nothing triggered today, but the market doesn’t feel right to me. Maybe we had our correction, but I doubt it.