RE: RE: Here we go again.....One can never predict the markets, but there are some general characteristics, which I think, one can observe.
Mondays are always unreliable trading days, because one never knows what will happen over the weekend.
(I personally suspect that is when the big boys get together and plan their surprises).
On thin volume (as in the current summer break) big traders will take advantage of the opportunity to short-sell and make some easy profits. (I think that particularly explains yesterdays market action, lacking any newsworthy event).
Fridays, of course, are often profit taking sessions, going into the weekend.
Anyhow, this summer seems to be following the usual patterns, except that we've actually seen a recovery and consolidation of the markets and especially the resource sector. There wasn't such a big "sell in May and go away" this year. Also, looking at the charts, the currently forming triangle patterns everywhere would normally break to the upside when everyone returns from vacation and we get higher volume.
Unfortunately, I keep reading dire predictions for the USA, regarding imminent bank failures, massive deficits, unemployment, failing treasuries, etc. etc. If only one of these reports is accurate, then I can't see how the markets can continue their recovery.
Maybe the market has got it right and the journalists have got it wrong, or maybe China will, after all pull us all out of recession. I really hope so, but I'm definitely not betting the farm on it.