Last week’s decision to hold through a trading bot driven low participation reversal higher appears to have been a good one as of right now. At least the campaign managed to survive the weekend and that’s no small feat in this volatile market environment, which incidentally is why I am choosing my words very carefully. The ides of October often bring us stormy weather as well as volatile markets. Given ongoing fears of a large scale sell-off another momo update seemed appropriate.
I swear, I can’t leave for more than a day without the market throwing a tantrum. What quickly has become known as the Fed’s ‘One-Two Punch‘ symbols across the board were thrown into a spastic gyrations last Friday courtesy of contradictory statements issued by various FOMC members. Frankly I’m not sure what all the excitement was about. It’s not that we haven’t been there before as Mrs. Yellen and Co. appear to be adjusting monetary strategy on the fly each month based on arbitrary market measures.
People keep writing me asking if this rally is real or if they should be paying attention to all that bearish talk they keep seeing on the financial news. Quick answer: Yes, of course it’s REAL because it’s happening. And you already know my general views on listening to anything coming out of the MSM. Whatever they are telling you has little bearing with reality and usually only serves as a plausible explanation of events triggered by factors far outside our horizon. So in other words – it’s bullpucky and you’re better off watching your goldfish for valuable clues as to where the market may be heading next. Or let me make it even easier for you:
I looked at equities this morning and had to pause a while in awe pondering the veracity of the recent advance in all its glory. Let’s not forget that about six weeks ago we were preparing ourselves for what seemed to be an inevitable awakening of the bear. Even though we never fully discarded the potential for a bullish reversal the odds seemed rather dim down there near the 1800 mark.