Friday’s trading in New York made the commodity picture look...

Friday’s trading in New York made the commodity picture look even better. Joy, oh joy....

Even coal stocks – KOL – had a strong move.

At some stage this week I expect some profit taking to appear – just enough to make everyone lose hope and turn bearish again but I think the work some of these sectors have done is most impressive. Just waiting for some sign of a bit more life in agriculturals.

In our market on Friday we had a positive A/D on the miners and a negative one on the industrials. I haven’t taken the time to go and check through my figures to see the last time this happened but I know it hasn’t been recent that is for sure.

Happy as I am with the commodity scene, it is the SPX that has me really intrigued. Is it possible that the SPX has formed an ABC pattern over the last month with the low on 26th July being the A, the high at the beginning of this month the B and the low this past week the C with the whole pattern sitting on the support from the May high? At the same time it is trapped in a perfect parallelogram.
If this is the case, it would be extraordinarily bullish. Nothing confirmed at this stage but if it starts to move up here then I think there is a good chance this will prove to be the case. If it rolls over, then we have a bigger correction on our hands in that index. Will know early this week so just a little patience required. I must admit that I like this bullish option because I have not seen any mention of such a pattern anywhere on the web.