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The Chartman

Still Bullish on Stocks Despite August Slump

There’s no denying it: August was an ugly one for the market.  However, maybe I’m just sensitive to pain, as it was only down 3%. 

The interesting thing, however, is the chart of the S&P.  We’ve seen two pretty big gaps and those will eventually be filled.  I think the filling will come shortly, so that has me still bullish on a rebound. 

I think we’ll know next week if/when the Syrian stuff gets resolved.

Regarding Syria, it’s always helpful to look at “war” stocks during times like this.  Two interesting ones are Raytheon (RTN) and ExxonMobil (XOM).

RTN got by unscathed in August, but I’d wait for a breakout before buying.

XOM spiked on oil concerns and then pulled back.  I think the pullback is prelude to a move back up and I think oil is going higher regardless of what happens in Syria.

Back next week, hopefully with a more bullish market chart.

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."