Hello All,

The SPX closed up mildly and USB closed above our trigger level by 1c !

We can’t fault anyone for electing to take this idea and run with it since so little is going on in the markets.  However, do remember that the SPX is ensnared in a web of support and resistance lines and it could double top, false breakout, stall here, really break out, close out the week with a whimper and so on…

In other words, the Dog Days of Summer are in full force on Wall St. and nothing would surprise us in this thinly traded environment.  Thus, be on guard for anything!

Most know that we’re not fans of tight stops but in listless markets we do at times have to observe them.  Our 2 stop levels are $52.80 and $52.10 with the former being very tight and the latter being a little more hands off.  A close below $52.10 would probably negate USB‘s nascent rally attempt for a while.

The XLF had a decent day yesterday so let’s hope its breakout is not a false one and that the first full week of trading in August finishes with a nice push to the upside!

We’ll update when warranted.

Thanks!

Sincerely,

Wayne