Thursday, September 26, 2013

Microcosm of the Year

It is that kind of market.  You have a huge uptrend followed by a small range with occasional bursts of range expansion, which really leads to nowhere.  We are in that small range and it is surprising why anyone would want to buy volatility at these levels when the realized is so low.
We are kind of in the middle of nowhere, I have very low confidence what will happen over the next 2 weeks, although I don't think we'll be going up much or down much.  What I do expect is a sharp rip higher after the debt ceiling gets raised and there are no more hurdles for this market.  So we have maybe two more weeks of tight range trading with a potential rip at the end of the rainbow.  Cash is probably the best thing to hold at the moment, just wait for a long entry on any further dips down to 1670-1680.

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