Things are happening fast. US debt deal, possible European solution, better earnings across the board - all news flow has reversed towards the positive. If your head is spinning around take a deep breath. Mr. Market decided that it is Risk On for now. Remember I said changing your mind (sometimes even twice a day) is what successful traders do?
All US stock indices are above 50 dsma and closing on high of the day. Apple is going to tell us where we go afterhours. If IBM is any hint, we are going to fly on better than expected earnings. Yours truly does not like to chase though - take some profits and trail the stops on the rest, if long. If not, wait for a pullback, one comes all the time. If AAPL messes up - we get a pullback for sure.
Sell some gold here and above. Looks less like Armageddon now. Perhaps we live for a while longer...
Dollar to be strong if debt deal is reached. If we get better existing home sales tomorrow (on top of today's better starts), buck is gonna get some more wind at its back.
Oil is a risk on play. It looks like double top completed with a hold of prior low, and we have a double bottom forming against it. Are you confused yet??
Afterhours UPDATE
AAPL: blew passed expectations. Very solid report. NQ is in heaven - AAPL is 12% of NDX.
US debt: looks like Boehner & Co. may not be giving the blessing to the latest proposal. Stay tuned...
Another Update
Mr. Cantor is warming up to latest "gang of six" plan. Still no blessing from Mr. Boehner, but a progress nonetheless. With everyone on board it creates a huge relief for market.
Also Mrs. Merkel is downplaying the significance of Thursday EZ meeting, with too many (six currently) plans in the works. So if US gets the deal and no deal in Europe Euro will dive. Stay tuned...
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