What the…FED?

I am trying to rush this out before I head out for the evening.  Today’s action was not so standard Fed in “feel,” that is, the fluidity of trading.  Normally on Fed days the trading is rigid, programmed large lots, especially right before they speak.   Today, however, trading continued, albeit on light volume, right through when they were supposed to speak, with only a slight spike.  Quite strange.

Aside from that though…Fed cut, stocks rallied, stocks get hit by freight train.  The last 5 minutes were a huge shock to the bulls, but, personally, I don’t think the upside is done quite yet.  Why not?  This is an updated version of the chart I shared with Johnny last night.  Check it out.

There is no real short term divergence.  I expect us to pull back some, but another push higher should complete the c wave of [4].  Otherwise though, volume was fairly weak, and breath was about 55:45 to the negative.  As it stands right now, we could have completed the triangle, with a slight throw-over or we push higher to finish a flat.  The triangle still unfolding is the third option at this point.  As we know, all 3 of these choices will send us lower in a wave [5] once they complete.

Since this is gonna be short and sweet, lemme finish off with a nice Hat Tip for the sweet part.  This goes to BX (with KFN in a close second), which single handedly added 5% to my IRA today (granted this is my largest dollar holding).  Way to rally like nobody’s business.  Looking later, I find that some insiders have been buying up shares.  They will be happy to know they are in good company. 😉

Skål!