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What To Expect For The Week 8-11-2008

This past week is not what I expected to see from the markets. The dollar rallied the second half of the week and the price of oil dropped even further during the same period. Oil is down for the week at $115.20, down $4.82 on Friday alone. The only thing I’ll say about that is that I did a lot of errands this week and had to fill my tank Saturday where gas has come down to $3.67 per gallon.
Last week I stated in What To Expect For The Week 8-4-2008, that there were economic reports that were due. There was the personal income and personal spending (funny how they go together) as well as the factory orders, all of them were better than what the street expected.
I’m glad that I took a step back this week and watched from the sidelines. Hindsight is 20/20, so looking back I could say I profited (in more ways than one) from watching, studying and learning.
The Dow is up big this week and the trick is to see if it can sustain these levels. During the next few weeks I do expect the Dow to travel between 11,300 to 11,800 points. Other than that I really don’t know what else to expect. The last two weeks (I know they were also the only two weeks) I was more off than I was on.
What I will say is that commodities stocks are way down and this is the time to look at the best of the breed in the sector. Freeport McMoran (FCX) I thought was a great buy at $100 and I didn’t jump at it, dropped down to $76 on Tuesday. Twenty-four hours later it was at $90 and now seems to be leveling off to $85. The dollar gained over 2% from Tuesday to Friday and over 3.5% from it’s low of the week. All this would signal that this may be the time for commodity driven stocks.
I welcome comments and opinions, if you have any predictions or expectations, please do so in the comment box.
Thank you and happy trading.

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