Friday, December 21, 2012
Well the Mayans were wrong after all, but Congress did there part to help them out. The market sold off at the bell hit to hit a low of 1423 and then rallied to finish at 1430. Honestly I am surprised the the support level held in the face of the news, but we did and that's all that matters. Going forward, until we get some clarity from Washington, I may hold off on establishing a long position even though the market may leave without me. Short term momentum has definitely lightened up in the face of the Congress's indecision. Long term still looks good. Next week is going to be interesting with a shortened week, lighter volume and Congress returning on the back half to maybe come to a solution.
Overnight surprise by our elected "leaders". Usually the market can weather bad news, but incompetence from Washington is probably another matter. I guess the market cant hold up in the face of a Congress induced recession. Let's be honest it probably shouldn't. So I am reluctantly going back to yellow-yellow until these quacks get this straightened out.
Thursday, December 20, 2012
Textbook move by the markets today. After an attempt to move lower in the morning, the market traded sideways until the bears relented and we pushed higher. The market closed at 1443 up 7. I do expect to trade sideways until the top value line moves up to the index. Right now the top of the value is almost 1429. Short term is improving, but again a little back and forth is probably expected. Long term looks good.
Wednesday, December 19, 2012
Nice retrace today with the markets taking some profits off the table. The market opened at the high of the day and gradually moved lower. The close still puts it above the 1430 resistance level. The value zone is a little lower at about 1425, so we could trade down a little bit from here and still be ok. The start of bull markets are always pretty volatile and a retest of the previous resistance level is not out of the question. If we move a little lower, I will look to put in a long trade and will start documenting them on a new page. Long term the momentum is growing bullish, although still just south of breakeven. Short term saw a slight slide in momentum with today's profit taking.
Tuesday, December 18, 2012
Monday, December 17, 2012
Very strong day by the markets today. We rallied at the start and gradually moved higher to finish at 1430. Things are looking up, I would like to see a close above 1430 to solidify the new trend, but looks promising. Overall both the short term and long term technicals are improving. Let's see if the market has some follow through tomorrow