Commodities collapse, Stock reverse again

Stock indexes gave up most of the gain from yesterday. They didn’t give up the gap open, but reversed all of the gain from the day session. I won’t bother to post a chart. You can just add a black candle next to the up candle from yesterday. No change in the indicators. I don’t have a clue if tomorrow will continue down in the direction of the trend, or flip back up. This market is nearly impossible to trade on the day time frame with daily bars overlapping with huge range. A more predicatable, or I should say inevitable situation is the collapse in many commodities. Gold was down over $70 including the post-pit session, and silver down nearly $2.25, again combining the day and after-market sessions. The grains were down the expanded limit. Oil was down nearly $6.00, and another 60 cents in the after-hours session. The dollar was a bit higher. I think the commodity story is over for now. There will probably be attempts at rallies. If the stock market can somehow break into a sustainable uptrend, there will probably be a new leader. Momentum traders piled into aapl/goog/bidu/etc, and that collapsed. Then the next momentum play was commodity related assets, and that seems to now be in the process of collapsing. China was another bubble that’s had some serious downside. Remember all the hype at the tops of all these bubbles. It was always said the trends had a long way to go and “this time it’s different.” It is never different. Parabolic price moves get all the attention, but they ultimately stall out when the last bull gets on the bandwagon, and then gravity takes over, eventually. I’ve yet to see an exception.

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