Monday Monday

Going through my watchlist this weekend I saw more bottoms than in a rap video. These bottoms may be short term in nature but regardless, the market has upside here. It almost makes sense to me that as soon as people start to observe that the economy is struggling we would have a big market rally.

A lot of traders are targeting 1320 on the S&P which happens to be the 50% retrace. I think we could go even higher and maybe make a run at the downtrend line coming off the top. Depending on how long it takes us to get there we could see 1350-1375.

The big news ofcourse is the Russia-Georgia conflict. It's not doing much for oil this morning, or gold for that matter which continues to work it's way lower. I love how Bush tries to act all hard saying he has been firm with Putin. If I was Putin I'd tell 'ol George to go pound some dirt and I'm sure he did, in diplomatic terms. The ultimate risk, now that the oil pipeline has already been bombed, is a scenario in which NATO gets involved on the side of Georgia. That would not be good, to say the least. Also, this conflict puts Europe's natty gas supply at risk. This is a fragile situation to say the least.

The market is working higher this morning, which I expect. My shorts are mixed. I think there is downside in Ag. The last thing I did Friday was to short MON. Haven't done too much this morning. Bought some HSY and I'm up a quick buck. Took some profits as well in ITW and RAVN, perhaps that was a bit hasty but it is what it is.