Tuesday, August 30, 2011

Confused Fed = SPX down

SPX got sold hard @ 1220. Big money likes to sell ahead of well-publicised levels. It was helped by confused and scared Fed. These bankers are making no sense, coherent argument, or economic reason for their disarrayed actions. They dissent, only to suggest no dissent will come later. They vote with Chairman to show the united voice, even though they would like to take no such action at all. Their nervousness has the market worried that it may be too late to save US from recession, or that they do not have the right solution for the ongoing problem.
Oh well, since the Fed will guide us nowhere fast, we will trade by the holy grail of investing - charts. 1220 is a resistance, sold once and may be retested again shortly. On the second attempt, if broken, we possibly see 1230, which I say will be sold hard again. If 1220 is double top, move below 1200 will be painful and quick, just like today's late day sell-off. It is imperative to trail the stops in either direction. This confusion is to continue for a while longer...

No comments:

Post a Comment