Dips should be bought with a hard stop at 1695.93. It doesn't get much simpler than this when the market is sending clear signals.
This is not a reaction to the deal finally being reached in Washington, or the fact that IBM missed earnings so badly that the No Taper crew will likely be out in force. It's just what is always is: market structure and wave pattern.
Business as usual in Washington is reflected in the dollar getting smacked today. 10-year yields are getting crushed after bond prices made a new low yesterday then reversed and spiked higher. It was an amazing reversal.
The equity market has an opportunity now to do what it needs to do to complete its pattern. If it doesn't take it, if it can't make the most of it, then it should probably be sold hard. I just don't think it's there yet.
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