Stock Market Blog -Aug 18th

The DOW dropped a few hundred points this week, the biggest drop in recent times. Could be the start of another correction. The economy in Europe and China however are showing signs of improvement. Bond futures at 131,  look like prices may want to head down to the 120ish level we saw in 2011 -so, higher interest rates.

AAPL rallied to $500 this week in the face of market weakness.

New all time highs:   COP (short list this week)
All time lows:  -- SCO

Pops: ?       Drops -CREE, CSCO, WMT

Next week: Economic reports 
Upcoming Earnings reports:  ANF, BBY, GPS, JCP, HD, HPQ, LOW, SPLS, SHLD, TGT

Market Commentary

This could be the start of a bigger pullback. If you are a trader, look for a bounce to start getting short, or getting out. Market volatility could rise in the next few months (September?) The DOW and S&P500 are leading the way down, while the Nasdaq100 is holding up the best so far.

Again, keep your eye on TLT to see if Interest rates continue to rise (TLT has been in a down-trend -broke support last week).

This week's charts:

S&P 500 -double top
10yr Interest Rates -still rising
Labor Force Participation Rate (10yr chart)

Commodities/Futures (charts):
Crude Oil was up, closing near $107.46 -still over $100.
Natural Gas was up, closing near $3.37
Gold saw a nice rally, closing at $1371
The 30 year Bond dropped again, closing near $131.03
The US Dollar was mostly unchanged, closing near 81.30

NEWS:
Jackson Hole, Fed minutes dominate week
Stocks as overvalued now as at 2007 high
Quit worrying about a 1987-style crash
401(k) savers are confused and stressed

Comex Registered Gold Cover Ratios Hit Unprecedented Levels: Over 50 Claims Per Oz. 
Easy Credit Dries Up, Choking Growth in China