Monday, November 16, 2015

Still Long

Seems like ISIS must have shorted stocks ahead of their terrorist attacks.  With no news, the market just got crushed on Thursday and Friday.  Now that the bad news is out, and the weak hands have been shaken out, we can finally get a good oversold bounce here.  If you took the pain in getting long, you have to ride the pain relief rally on the other side.  Otherwise you just end up riding your losers and cutting off your winners.  If you are going to ride your losers, you have to ride your losers when they become winners.

I am expecting a lot of resistance between SPX 2060 and 2080.  This looks like the market in January when it was chopping around in volatile fashion for several weeks.  We will probably repeat that chop as long as the Fed keeps the hawkish tone.  They are unusually quiet today despite the Paris attacks.  It was a total overreaction by the chicken littles and fear mongers this weekend.  Panicking over terror is always a dumb bet.

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