Premarket 8/8/05 Fade the faders!

Good Morning

Overseas markets were generally strong and Oil has been looking up all morning. Security concerns in Saudi Arabia are in large part the reason for Oil's bid this morning. Futures have been looking strong all morning as dip buyers contemplate whether the correction might have run its course. NT was out with decent numbers which will be a good tell for the day.

We do expect that dip buying will show up more forcefully than in the last few days however, the market is not ready to sustain an upward move. Therefore we may attempt a slight "buy the dip" approach ourselves but will be looking to take profits quickly (tight stops would also be prudent). The market is not yet oversold and positive divergences have yet to materialize. When new highs start to increase and Small Caps regain some footing it will indicate a more convincing upside attempt by the market. The key today is to be nimble.

So if the market gives up the bid from this morning's futures, we will fade that weakness with a long-side trade of QQQQ. Look for us to later fade the expected strength through out the day.

-Good Trading-

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