Friday was a good example of a trading session appearing to be bullish, but which actually was fairly bearish. The raw numbers said the market was up, but, if you look at the chart, you can see all those gains happened at the open, with subsequent gains almost completely given up. To make matters worse the market then closed below the 15-day moving average.
I view that all as bearish, so if you have a ton of open longs, you might think about taking profits.
There was some big news in the coffee market, with Starbucks (SBUX) getting into Green Mountain’s (GMCR) “grill!” It played out fairly predictably in the market, with SBUX making a nice move up -- and GMCR suffering. I’m not sure I’d short GMCR, but SBUX might make a nice long addition.
Finally, if my feelings are correct, we should see a slight selloff next week. And if I’m wrong, well, I’ll be back next week to take my lumps.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."