Chinese markets have declined 20% and are likely to continue as everyone realizes that China will not be the hoped for lifepreserver for the world economy afterall. We are likely to be in a very narrow trading range this week due to big boys on vacation till after Labor Day. Expect 1000 to 1025 then they may try to pop it up to 1050. Light volume makes it easier for them to paint the tape to the upside.
3Q will be rigged but market is so overbought who knows what will happen. I expect these gangsters to try and rally DOW up to 10,000 and last night was reading reports on Blue Chips being bought so they are up to something. Have not bought anything or added to any positions today. Did go Short on IWM and will take some profits but will hang onto position going into September. I do believe we will get a correction back to 950 on the S&P, and then even lower. There has been alot of Insider selling in August so what does that tell you. I also expect that the market is likely to punish Obama for all his deficit spending. But effects take time so caveat emptor!
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