Nothing much to say except that every asset class is following the script. If you are a regular reader of this blog, nothing in the market’s action today would surprise you. Equities held ground, crude sold off, PMs are neither here nor there. It has all been told before.
They say that because Ben opened his big mouth, equities dropped. Poor Ben! Before QE Infinity, folks would eat his every word and now they don’t want him to open his mouth.
We are close to the 1st target of bounce which is Fib.38.2% retracement. Anyway, it does not matter how high the bounce goes, so long it holds till the end of the month. My initial target is around SPX 1400-1425 but I would not be surprised if it goes higher. I am using out of money calls of December to play the bounce and have advised everyone who care to listen not to go long, rather reduce the equity exposure.
Regarding Crude, the bounce failed. Despite the valiant efforts of chief ranter to scare folks with coming zooming of oil price, it closed 2% lower. And yet it is too early to short it. I think crude may spend few more days in this range, backing and filling before we can short it again.
Gold and silver should be going up because this the good seasonal period for the bounce but so far they have not shown much strength. I find that little worrisome, so I am staying away from it for now.
And Nat. Gas continued it’s up move which I had written before. Not much to comment there either.
So you see, nothing much has changed and I am not finding much to blah blah.
Hope you are able to make some profitable trades because the calls could not have been much clearer. If you have any question, please feel free to email.
Thanks for stopping by. Hope to see you tomorrow. Have a great evening folks.