Today’s report will be short as I am running an errand and short of time.
Three consecutive red days in SPX and yet it has not been able to break the low of last week. That goes to show that time is still not right for the bears. Both my calls for this week have come to pass. I had written that the last week of March will have some weakness and here we have three red days out of four. Most likely tomorrow will also be red but not much. I have also written that the maximum downside I expect is 1380 and we are well within the range. Of course we still have one more day left in the week and anything can happen. But I doubt that SPX will close below that level.
There is too much noise in the market place and everyone is trying to make a sense of the market action. Too many good folks are discussing world economics and depending on their conviction, taking position in the market. Some think Europe is going to blow up and will take the world with it. Some are taking precaution thinking Israel will attack Iran. Still others are buying because they think USA has de-coupled from the world and is growing. As they say, “Each to his own”.
I am trying to stay clear of economic analysis and stay focused on what the market is going to do. Apart from one call in late Jan, all my market calls so far have been spot on. Both for equities and PM. My method does not depend on TA alone and I do not believe in fancy charts. Charts have their usefulness but up to a point. I do not understand Elliot Wave and that is my weakness. Also because I was taken to cleaners by Robert Prechter in the past. But there are many who make good use of it and kudos to them.
Anyway, coming back to market, we got only 13 out of the 20 points that I was looking for. May be we will get some more tomorrow. Depending on the price action during the day, I plan to go long for a very short time.
I will present my detailed road map for the SPX by the week end. Thank you for reading my blog. Please let me know what you think of my market calls. You can post your comments in the blog or email me directly at firstname.lastname@example.org or follow me at Twitter. (@ BBFinanceblog) I look forward to hearing from you.