The story of the day is with the move in the markets today we saw majority of the recent losses recovered in higher turnover. Today’s move is a clear sign of institutions putting money to work and we certainly were clued on Friday. In our forums we noted the change in trend on Friday and we certainly were poised to head higher. There are no crystal balls, but price pays when you listen to it without opinion and/or bias. Yellen stole majority of the day’s news attention and she did her job by not tanking the market. Many believe her to be a dove and her testimony today evidently reaffirmed this view amongst the Federal Reserve Bank’s watchers. In the end, we advanced higher in price and were able to take advantage by using price as our guide. Although the end of the day action was less than desirable we do have some nice upside with volume.
One thing we have begun to notice is the higher prices paid for rent and in energy prices. ETFs like DBC, DBA, GLD, SLV, and JO. We have yet to see a long-term trend signal go off for any of these commodity ETFs, but a few have signal breakout through various channels. It would be interesting to see if commodities do breakout how the people will handle? Not only will it be interesting to see how the regular folk react, but how do the politicians react heading into an election cycle? I am sure speculators will be made into public enemy number one. Just follow the trend.
We still believe a long bias here is warranted given the quantitative easing environment we are in currently. However, we aren’t blind to the downside and last week’s low serves as a pivotal point for us. Any reversal taking out that low would be an indication we are going to see lower lows. Remember at the moment we a set of lower lows and a move below last week’s low would confirm a lower high the very definition of a downtrend. Of course, we could just blast higher and with our long bias we’ll certainly take advantage of the move. The key is to have a plan and execute!
We did see leaders push higher despite Chinese stocks lagging. Volume was higher with solid volume behind it all positives for the market. All you need to do now is be a member of Big Wave Trading and execute!
