S&P500 and Dow rallied yesterday again, better if we say has rallied in the last six days in row.
This song is more actual than ever:
The sentiment is extremely bullish in Asia, US and Europe, and all over the world. Yesterday’s number: Dow +1.11%, S&P500 +1.35%, Nasdaq 1.63%.
All investors cooled down and set into RISK ON mode, after Bernanke said on Wednesday that the FED remains accommodative. Basically Bernanke did not say anything new, but merely just opened his mouth.
It tells me the market is not concerned so much anymore about the QE. The market is now pricing in the tapering of QE program.
On Wednesday the Fed released the meeting minutes from the recent meeting. 19 members of the Federal Open Market Committee are looking to cut the Fed’s $85 billion in monthly bond purchase program by the end of the year – information that is broadly known.
So if the fact will come out in October or December nobody will be surprised. That is a smart tactics by FED.
Technically as I said last week we had a break out on S&P500 at 1610, and after it came up to the first resistance 1650 and yesterday made a new breakout at 1670. Now it is in the open air.
Where is the end of the rally? I don’t have the faintest idea. What I only know is that this is a BULL MARKET. And how will we trade the bull market? Be really bullish, kind of bullish or neutral? DON’T SELL because you believe that you are smarter than the market.
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