We are getting to a strong support area around ES 1933, which is SPX 1940. We could have one last flush out to the lows that we saw last week around ES 1920. But either way, we are very late in the selloff and we can liftoff higher any day now. So you have to get ready to BTFD when the opportunity presents itself.
There were some fairly scary headlines from Europe, with German Industrial Production plunging, much of it was likely due to Russia. The European stock indices got slaughtered, and that index is also nearing very strong support areas from the summer.
I am waiting for one last push lower, hopefully to time it better than the last dip buy, which was profitable, but I got in too early and had to take some heat on the trade.
By the end of the week, the storm should be over and we should be back to our normally scheduled programming of slow grind higher with low volatility.
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3 comments:
HI, what do you think about QE ending? There is no fuel inside this bull market..
Thanks,
Tony
QE ending affects bonds much more than stocks. The benefit of QE was low long term interest rates. We still have low long term interest rates. So this fear that with no QE, the market has lost its main support is erroneous.
Stocks have been rising on the strength of stock buybacks and M&A, not QE. if you take away all the stock buybacks and keep QE, you probably have a S&P at 1500 and 10 year yield at 1.5%, not 2.4%.
Thank you so much!
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