This morning the major stock market indexes all opened slightly lower on this morning. Monday trading throughout the summertime in the United States have been very light volume trading sessions. When you combine a Monday in the month of August one week before the Labor Day holiday in the U.S. the markets could just float or drift for most the day. Lift volume trading environments will generally favor slight upside. Therefore, unless the charts give us a bearish setup it is difficult to see any major declines today. Last Friday the market surged higher from a technical oversold condition and the next trading session is usually a flat trading day.

This morning the leading commodity stocks such as Cliffs Natural Resources Inc (NYSE:CLF), Freeport McMoRan Copper & Gold Inc (NYSE:FCX), and Souther Copper Corp (NYSE:SCCO), are all trading higher. Usually when these inflationary stocks trade higher the major stock indexes will remain higher or at least flat on the trading session. Should these stocks reverse their early gains then this is a good indication that the market indexes will decline. The U.S. Dollar Index is also very important to follow as the stock indexes will generally trade inverse to the dollar.

Monday’s are usually a very light volume trading day which favors an upside bias. However, often after a big move up or down such as we saw this past Friday in the market the next session is usually a flat trading day. We shall see what today has in store for us traders and investors. I’m thinking today is should finish around the flat level at this time.

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Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com