The good news is that Asia did not tank Sunday night. The Shanghai Composite flirted with both sides of zero and finished up about 15 points. Not a big win but well off the lows.

The Hang Seng is still open and the index is down about 200 points. For an index at 22,400 that decline is nothing to be concerned about but there is still 30 min left to trade and the rtrend is down.

The bad news is there has been no weakness in the dollar. The dollar index is down about .05 and appears to be shaking off some earlier weakness. If the dollar does not give back some of its gains from Friday we could be in for another rough day. It could be a sign there are still shorts to cover.

The ugly news is negative S&P futures with the trend pointing down. They are currently down --3.50 and I am afraid they could test support at 1100 before morning.

Gold prices are holding at just over $1,150 and about where it closed in after hours on Friday. This is about $14 below the official close on Friday so the net change on the charts is a loss of $14 for Monday.

Oil prices are flat at 75.55 and still two weeks to go before expiration. The current trend is down and the OPEC oil ministers were all in the press over the weekend saying there would be no change in production when they meet in December.

We were stopped out of BHP, OXY and GLD and all were profitable despite the stop.

I wanted to go back into the GLD because the dollar will eventually go back down. However, we need to wait a day or so and let the smoke clear before venturing back into the GLD position.

I also still like BHP but with oil prices weak I think we need to wait on BHP for a day or two. BHP is a play on gold, minerals and oil.

With the futures falling overnight (-3.50 now) I am leery of adding any plays for Monday morning. Let's be patient and see what the market gives us as a setup for Tuesday morning.

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Jim Brown

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