Markets are struggling to find direction with Q3 earnings in full swing. Dow Jones flirts with 10,000 but breaks down- the Dow Jones Transports look sick, which is never a good sign. Technically it seems like the weekly MACD on Toronto wants to break down- the next few days/week will be critical to see if this pattern completes. If it does, look for a short-lived rally followed by the much awaited next leg down. Oil seems like it's gone too far too fast; as with the Canadian dollar- a little retracement would probably be healthy to put things back in balance. Even gold has cooled off here and not surprisingly, the TIPs are down from recent highs. It's hard to get real conviction out there right now. Of note, AAM-V showed some life last week on the granting of potash drilling permits in Brazil, nice to see the stock get some recognition! The Ag theme is still intact with POT-T reporting this week (a non event) and a very wet crop slowly coming off the field in the Mdwest - the sector is poised to bounce here but to listen to the Elliot Wave camp the grains will bottom early next year so we could still be in for some rough times ahead!
Disclosure: Long AAM-V.
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