The market plunged following the failure to get the bailout bill passed. Economics aside, I think there is also alot of politics being involved in this whole deal. The House would reconvene only on Thursday to vote on a revised bill. I'm not an economist or politician. I don't really know or care what the outcome will be on Thursday. I'm a trader. All I want is for the market to settle down. But I do like what I see on the VIX on Monday. More on that next time.
Back to the market on Monday. Not many stocks were able to hold up, with the exception of Gold, which is the flight to safety haven during such turmoil times. The chart above shows SPDR Gold Trust (ETF) (NYSE:GLD) breaking out of bull flag today with good volume as the market tumbled. A good looking chart, but watch for resistance around $92.
You'll see similar looking bull flag charts in Barrick Gold Corporation (USA)(NYSE:ABX) and Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), but these two have not broken out yet. Mon: Personal Income, Personal Spending
Tue: Chicago PMI, Consumer Confidence
Wed: ADP Employment, Construction Spending, ISM Index Notable earnings: MOS
Thurs: Initial Claims, Factory Orders Notable earnings: GPN Fri: Non Farm Payrolls, Unemployment Rate, ISM Service Notable earnings: FDO