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The Chartman

Still Bullish on Stocks Despite August Slump

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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.

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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 (NYSE:RTN) and ExxonMobil (NYSE: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.

What do you think?

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