I think the past week can be summed up pretty much by Thursday’s action. Up until then it was relatively peaceful and then, wham, a 250-point down day. That day broke the steady uptrend, and certainly gave the bears hope. My feeling is that the bulls aren’t done yet, but the short uptrend line was broken, so be careful with new and existing long positions.
I wanted to circle back to Facebook (FB) to see if we now have a better sense of the stock. Unfortunately, all we learned was that straight down moves don’t last. But, neither do straight up moves. So, all we really know is that momentum players are in charge.
Therefore, I’d still let the dust settle before moving further.
Finally, with all the world-wide upheaval, could the lowly dollar be a safe haven? It’s had a good run, and then pulled back. But, nothing goes straight up and then straight back down (well, except for FB!), and the more logical move is the pullback we’ve seen and then a resumption of the previous trend. In other words, I’d expect the dollar to continue up again and exceed recent highs.