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Fear & Greed Trader
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INDEPENDENT Financial Advisor / Professional Investor- with over 30 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
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  • Market Update 10/13 - Crosscurrents Everywhere 2 comments
    Oct 13, 2013 5:54 PM | about stocks: SPY, QQQ

    The S & P drifted lower last week until there was a 'hint" of compromise among the 'clowns' in DC , which sent the S& P from 1656 on Wed to a week ending close of 1703.

    In fact the market has pretty much traded exactly how I thought it might when we reached the most recent high of 1725 . I mentioned then that it appeared we could pullback similar to the previous two highs noted by the green arrows. That text can be seen here :

    http://seekingalpha.com/instablog/706857-fear-greedtrader/2236882-market-update-another-dow-theory-buy-signal

    (click to enlarge)S & P 10/11

    We did retreat back to the ascending trend line where S & P 1650 held.

    From the VXX reversal , I mentioned here last Thursday, to the bounce of the S & P , the Dow holding it's 200 day MA and the strong performance of small cap Russell 2000 , there are many indicators flashing that we may be set to go after new all time highs. The last time the DOW touched it's 200 day MA was last Dec when the market set off for a great ride into 2013. Here we are again !

    I would be inclined to make the call right now for another new high except for the negative crosscurrents provided by the DC antics.

    The volatility index futures are trading higher than the November VXX futures. That suggests volatility is expected in the near term , it comes as no surprise and quite frankly with what is transpiring over this weekend in DC, investors don't need any indicator to tell us that.

    One other note , Margin interest is near all time highs. That fact in itself is not bothersome to me , BUT if things turn negative because of DC, it will add fuel to the fire in the form of margin calls.

    Bottom line-- the underlying bull theme is still in gear with the facts I mentioned above. Its not a matter of If we get new highs but a matter of when.. The only question that remains is whether we may have to take another detour provided by the incompetence in DC.. Imagine for a minute where the economy and this market might just be if not for the continuous roadblocks thrown at the economy by the government.

    Washington will get the headlines next week , but don't forget earnings , they will be another key to where we go from here ...

    Stay Tuned

    Themes: Market update Stocks: SPY, QQQ
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Comments (2)
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  • dc984
    , contributor
    Comments (637) | Send Message
     
    startered positions in xom and cvx last week on your advice. thank you sir
    14 Oct 2013, 02:34 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5674) | Send Message
     
    Author’s reply » Streak

     

    Best of Luck ....
    14 Oct 2013, 08:14 AM Reply Like
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