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Bernanke’s speech lifts up stockmarket

Bernanke’s speech gave the stock market some heartening news that the long term growth of US economy is on track. But the Feds annual meeting in Jackson Hole,Wyoming, gave no new clues as to what the Feds will do next. There was no silver bullet so as to speak and that disappointed many people and the market dipped in initial trading.

EMini Futures Rising

The stock market is stuck in a well. Its unable to propel itself out. There are one day rallies and the next day all the profits are taken out. This kind of market can give whipsaws to traders. You go long and it goes against you next day. You go short and it goes up in a sharp rally. Its dangerous to trade in this market. Its like going to your favorite beach and there are riptides that can pull you out to the sea and you drown !

Stock are up but they need volume. Without volume nothing happens its a dull market. These rallies to the upside lack volumes and on down days the volumes pick up. It should be the otherway around. SPX is sitting at 1169 and it can go up much higher.

Gold crashed last 2 days and is now going up. This can whipsaw lot of Gold Traders as well. As long as the economy stays in a turmoil, Gold is in a bullish market and can be bought on dips.

NFLX, CMG, PCLN all up on the market news, but the short lived rally may come crashing down on Monday who knows.

Waiting in the dug out , ready to bat..

{ 2 comments… read them below or add one }

seo articles August 27, 2011 at 1:27 pm

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