Update

So yesterday I mentioned the 1417 level for the bulls and we failed to reach that level in the regular trading hours but as usual in these days of computer generated trading we did hit that 1417 in the overnight session! This is what has been happening for the last few years and that's why it is difficult for the average trader to make money because the big guys use quants and execute trades in the overnight sessions. Anyways since we tested that level overnight and rejected it we now have to look at a test of yesterday's lows and see if they hold. If we don't hold them and bounce that would signal a deeper correction to come. level to watch on the low side is 1404

Update

So Gold has been getting a bid since the Soros news came out. Also BINGO on APPLE with new highs. Right now he market is still in lala land and you must be extremely patient with positions. Yesterday I read that only 11% of hedge funds are outperforming the indices and that tells me going into the end of the year there might be a rush in with heavy volume for those manager to show something for them to get their usual exorbitant bonuses, it is all a game! The reason why we are in lala land is because most funds are just sitting on their hands as their is not mush volatility anywhere that warrant them to take risk. Elections should prove some movement either way! As long as the republicans think the have a chance to win I think the market will thread higher but it Obama is re elected get reading for lots of the slow drift upwards to be sold. Lets see if the bulls can get to that 1417 level today on the S&P. We trading at 1407 before the open so we would definitely need some action to drift us up in this low volume environment.

Paulson and Soros buying Gold

Hedge-fund managers John Paulson and George Soros boosted their gold holdings during the second quarter, a sign that some high-profile investors were still banking on higher prices for the precious metal despite its lackluster performance this year. John Paulson's Paulson & Co. Inc. raised its stake in SPDR Gold Shares GLD +0.60% , the world's largest exchange-traded gold fund, by 26% during the three months ended June 30. Paulson & Co. held 21.8 million shares, valued at $3.3 billion at the end of June, according to a quarterly securities filing released late Tuesday. The fund also increased its holdings of gold-mining companies, holding a combined 98 million shares, up 3.5% from the previous quarter and valued at $1.9 billion. Paulson's gold ETF and mining-company holdings together accounted for 44% of its U.S.-traded equity assets, from 33% the previous quarter. Soros Fund Management LLC more than doubled its stake in SPDR Gold Shares during the three months ended June 30, according to a filing, to the highest level since the end of 2010. The hedge fund held 884,400 shares, valued at $137.3 million at the end of June, from 319,550, or $51.8 million, the previous quarter. Soros Fund nearly cashed out of gold during the first quarter of 2011, reducing its shares of SPDR Gold Shares by 98%, to a stake valued at less than $7 million. The fund continued to pare its position, to a low of 42,800 shares during the second quarter of 2011, before rebuilding its stake in the quarters that followed. Benchmark gold futures fell 4% during the period covered by the funds' securities filings, as the European Central Bank and the U.S. Federal Reserve refrained from implementing new monetary-easing measures despite slowing global economic growth. Easing policies can raise concerns about inflation down the line, drawing investors looking for a currency hedge into precious metals. Through Tuesday's close, benchmark gold futures were up 1.4% in 2012, and down 15% from September's record high.

No summer action still

CNBC just reported that yesterday was the second narrowest day of the year. Boredom!!

AAPL

AAPL looks like it is on a mission running into the release of the Iphone5 which should happen in October. I would not be surprised if this CULT stock gets to new all time highs by then.

Analysts: Stock Rally might be setup for Bigger Collapse

Despite the current stock market rally, the market remains volatile and investors should remain cautious as the rally might be setting the market up for a bigger collapse, analysts warn, according to CNBC. "I think we're in choppy waters and that continues. You’ve got to remember to sell if you own the stock market now," Charlie Morris, head of absolute return at HSBC Global Asset Management, tells CNBC. The Standard & Poor’s 500 Index went above 1400 this week, while European stocks reached a four-month high, and Asian stocks achieved a three-month high. When the current rally fades, which might be this week, the market will be ready to collapse, experts warn. Editor's Note: The Final Turning Predicted for America. See Proof. "Watch out for the end of this week," says Sandy Jadeja, chief technical analyst of City Index, according to CNBC. "If we start seeing a negative close by the end of the week, that would suggest that next week, and the week after, we'll start pushing to the lower side." Despite being bullish, Jadeja is worried about the divergence between current prices and technical indicators. Dan Geller of the Money Market Index says the recent rally is irrational. "The rally on Friday after the release of the employment figures and the consumer confidence index really has no economic merit," he tells CNBC. In a note to clients, according to CNBC, Barclays equity strategist Barry Knapp writes that the underlying economic factors — including slowing growth and political uncertainty — remain the same as they were in the second quarter when stocks dropped. "We remain unconvinced that investors should chase the low volume 'wall of worry' August rally." The stock market's choppy behavior since late June, with at least as much falling as rising, indicates the market is churning rather than building a sustainable rally, according to Barron's. Plus, small-cap stocks are well below their June peak levels, although large-cap stocks are reaching higher highs. Another troubling sign, Barron's reports, is that money is not flowing into stocks in significant volumes. Stocks seem to rise only when stimulus from central banks seems possible. Read more on Newsmax.com: Analysts: Stock Rally Might Be Setup for Bigger Market Collapse Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!

Obvious Summer Dulldrums

Monday we had a 11 point range on the S&P yesterday we had only 6 points forming on the daily chart one of the smallest candle in months and today we are only in a 5 point range! Holidays for most big traders before their kids head back to school, expect much of the same lethargic mode till second week of September when most are back .