We are in that zone again, that 30 point up or down move day after day from middle of May onward.
By and large there is not much action really in the market and it is as if folks are going though the motion for the benefit of day traders. Or is this the calm before the storm? And already the hourly charts have moved from over- sold to over- bought.
Today everything was up. Equities, gold, crude, bond and US $. The divergence between equities and FX is quite big.
So who will catch up? If there is some good news from the four wise leaders of Europe, may be Euro will go up and equities will reach moon. We will have to wait and see. If on the other hand, nothing comes out of the 913th Euro meeting, we may see bit of selling. Tomorrow is going to another important (impotent?) day for the market. The fate of Obamacare will be decided and then news from Euro summit. As you all know, I hate to take or even suggest to take any position before uncertainty.
I am still debating whether to take any long position in the coming rip-fest. It will be like what I wrote yesterday: picking up pennies in front of a steam roller. There is nothing in the market except central bank liquidity which can move the market higher. Either the Fed or ECB or someone from somewhere will have to feed the junkies. Till that happens, the road is pointing down.
I think the best trade now would be to wait for the market to reach either resistance or support and see if they hold. It is not necessary to force a trade here or take a trade just because we are bored. In the mean time,let me share with you a nugget of gold, an Analog which is not silly.
(Hat Tip: ED Matts)
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