Weird Things Happen When Extra Innings Are Needed

David Frost // Market Outlook

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August 15  

And that’s where we are now, extra innings.

Sometimes in top of the inning one team will score a run or two, and it will look like the fans can finally make their way to the parking lot as the game is coming to a close.

Not so fast, the other team just tied the game again in the bottom of the inning.  Sit back down, get another bag of peanuts and watch…

This is the type of behavior we are beginning to see, and is to be expected for the next couple of weeks as the bulls and bears slug it out for the late night win.

In mid July the market finally cracked.  We sold off about 5% only to see a rebound to get the bull juices flowing again.

This is normal behavior, and as you’ve read in these pages before, it’s hard to kill a bull.

Rest assured, within the next few weeks there will be a clear winner.  I have a pretty good idea who it will be, but we’ll just wait for the market to tell us for sure.

Today there was more back and forth, blamed solely on the activities of Russia once again.  There were rumors, redaction of rumors, and finally some more rumors.

There was discussion about a meeting Sunday between Russia’s prime minister Dmitry Medvedev and his counterpart in the Ukraine.  This is supposed to take place Sunday night, so expect more of the same.

Leading up to and following the meeting there will be reports of an agreement, then there wont be.  More of the same.

Just keep your eye on the market, or better yet keep an eye on me and I’ll keep an eye on the market for you.

This market can remain bullish for a while longer, and with light volume ahead before the Labor Day weekend, you must think in terms of higher prices.

All the relevant data is found in tonight’s video.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost