After the support line held. It was off to the races making a new high Thursday. Then Friday blasting even higher. What I believe is happening is many hedge fund guys became real cautious when the politicians in Washington had their showdown. As a result they now need to get in as fast as possible. So here we are with new highs. This week I am looking for this to pull back. I have a handful of calls I will be getting into as the market pulls back into the 1710-1725 area. Let’s see how it goes. Happy trading.
I am not posting a new chart even though it shows what I thought would happen. The bottom up trend line held. This means that I am still bullish. Thought for a bit last week that it was going to reverse. The politicians that we elected almost messed it up. These guys and gals are really amazing. Our Government brings in around 3 trillion in Taxes per year and we owe around 17 trillion. One of the house representatives out of Oklahoma put it well today. This is like a married couple fighting over their finances when they are way in debt. I have a solution. You and I need to start to live as close to debt free as possible. Change the individual and you will change the country.
Well we are still flirting with this support area. Last post I talked about the 1670-1680 area. I see this area holding. I also got the politicians wrong. I thought they would keep the government open. Now the battle is over the debt. Going to be interesting to see how this ends. I am still long term bullish and short term bearish. I think this area will hold and start a climb from the 1665 line I have drawn. Went to Vegas this weekend and met some of my trading friends. What a great time with a wonderful group of people. I also met Oscar Carboni. He is a riot. I look forward to learning more about him. Happy Trading!!