Today market was quiet and didn't move much. It's down a little, with low volume. From tomorrow, we'll have lot of earnings, plus economic data. Also this week, lot of earning releases from Asia, which can move the market as well.
Overall, all major indices were overbought, so I expect a pull back.
- DIA and SPY are overbought and show the bearish pattern for at least short term.
- If we have weak housing data and weak GDP, then I expect a perfect time to pull back sharply.
- On the other hand, if the data is strong and earnings are good, the market can work out the overbought conditions quickly just like today, low volume with very small pull back, and then move higher.
- PM and uranium pulled back as expected, I'll continue to monitor them and wait for better entry.
- Dollar bounced back, but is still at historic low. I don't expect it heads sharply lower from here, I expect a slow and long lasting bear market for dollar. And if this trend continues, it will have a negative and long lasting impact on US stock market and economy, since foreigners will slowly move money out of US. So gold should do well long term as long as dollar is firmly in a down trend.
- Out of all the earning reports, AAPL will have an impact on tech, as well as MSFT.
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