The Day After
Yesterday’s boundless exuberance seems to have dissipated overnight and we are back to an uninspired and slightly nervous market. Wednesday morning it was uncertainty that was the problem – today it’s the certainty that the Fed won’t be tapering but that opens a whole new can of worms. In other words, what next?
Generally speaking this is a pretty typical ‘day after’ especially given the 4.0 signal spikes on the Zero Lite which is suggestive of a veritable buying panic. Everyone’s taking a breather right now (no participation as evidenced by the flat signal) whilst trying to figure out what to do next. We have no technical context and it’s certainly not earnings or economic facts that are driving the market. At this point it’s basically the Fed’s printing press spiced up by the occasional middle Eastern conflict. So in a sense we’re operating in a vacuum.
If you’re long since the breach of the weekly NLBL (or much earlier from our original entry near 1665) then I recommend that you do nothing right now. Let ‘er run – nobody knows how far she’ll go and this is the time to simply sit and wait. If you recall – we do have a P&F price objective above 1700 and until we either get there or paint a sell signal I wouldn’t mess with it.
One lousy setup for my subs – hey remember, I don’t make the tape, I just report it. But it is a good one 😉
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