Friday, October 11, 2013
Pullback Before the Deal
Yesterday showed the pentup demand, the torrents of liquidity waiting to be unleashed on deal uncertainty being lifted. $85B/month is not child's play, it is still ongoing and lifting all boats when the sentiment shifts towards more bullishness. If for some reason we get a little pullback because of the deal not getting done over the weekend, I would use that opportunity to get long risk on Monday, around ES 1670. A 1% pullback would be a total gift set up for a nice little run to ES 1700. The wiseguys are picking up shares to sell to the squares after the deal is announced. Just hoping to see one little shakeout before the gap up higher on deal news next week.
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