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Nowheresville

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August 22, 2010 – Comments (2)

For nearly the last 12 months, the major equity indices have gone ... nowhere. We have been in a trading range and the overall gains are virtually non-existant. The problem is the volatility and the size of this range is giving a lot of fakeouts to both the upside and the downside. Neither bulls nor bears can claim any kind of victory here (I sure can't). And I doubt we will get any kind of market clarity until we break out of the range. As much as I like to predict things (and I do, I am a sucker that way :) ), this pattern exists for one reason only: to exhaust both camps. I personally think this pattern still looks "toppy" but dramatic reversals are now par for the course.

Have fun, but be careful.



ENLARGE

2 Comments – Post Your Own

#1) On August 23, 2010 at 12:07 AM, DarthMaul09 (29.89) wrote:

I think that if you ignored the pundits and bought a group of the PM miners in February then you are likely ahead.  Recently, I have been buying silver bars and raising cash, although I did add to TGB, SLW, EGO and some other miners during the sell off two months ago.  I am considering putting a little money into energy stocks, because they have underperformed for most of the summer, but for now I think the miners and metals are a safer bet.

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#2) On August 23, 2010 at 12:09 AM, binve (< 20) wrote:

DarthMaul09 ,

You are reading my mind (see my next post) :)..

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