There are a lot of positive news in the market, for a change. Some of the companies have announced good results. FDIC starting a “bad bank” concept and FOMC meeting announcement at 2:15pm. There is nothing much fed is left with from the interest rates perspective, but Uncle Ben may have some more tricks.
Y’day volume was thin, and internals were ok. I would consider action so far as bouncing from the oversold region. But I am ready for any “new development” as well. The markets need to clear upper edge of the minor resistance which appears to have formed over the last few days. For the DJIA, the upper edge of the resistance is near 8250, while the equivalent level is near 855 for the S&P 500 and 1515 for the NASDAQ. A move above these levels may be viewed as a breakout but volume is the key. So watch out for the volumes together with any move to avoid any bull traps.
So far we have hatrick on earnings (2 shared as bonus trades in speculative section, 1 shared as Income portfolio) for OPNewsletter (AXP, BTU and GD). So far so good, we have invested nearly 20% of capital and have cash available for more opportunities.
Trade carefully and as much possible, delay decision of going long at least by one day.
Cheers and profitable Trading, OP