September Starts Neutral to Negative

The hurricane events over the past week have really thrown the commodities markets into frenzy. Already extended oil prices spiked even higher as damage assessments rolled in. It is difficult to complain too much about the damage this did to our oil shorts when considering the fact that so many are now without homes or worse as they still continue to deal with the aftermath. The market is still trying to work out what the long term economic impacts on the US economy will be and bets on and end to interest rate hikes are now being considered by the market. Equities are in a tough spot here. The NASDAQ, as pictured below, moved back up to broken support in a throwback pattern. Technically speaking, this is a short set up. Scans however turned up neutral over the weekend and we really need to see the index break lower before we will get any decent short setups here. So, while odds favor at least the technical sector rolling over here, it is best to be patient and wait for follow through. It will be interesting to see what note this week will begin on.