S&P Rally, S&P Resistance
Exaggerated trends characterize today's market.
Hello from New York, where I swear I heard Flight of the Valkyries blaring outside the studio just before Helicopter Ben swooped down and turned falling snowflakes into dollars.
Deadly, armor-piercing dollars. Having thought about it for 30 minutes or so, that's about all I can conclude from the most verbose Fed statement ever.
If I were long a bunch of trading stocks, I'd have sold them into this rally in the S&P 500. I've added a drib of short exposure into that level - with a nice tight stop, in case the angry buying mob takes this thing over 910 near the close. Two major themes here: 1) I'm playing small. 2) I'm more confused and fearful than Matt Damon when he ran out of ammo at the end of Saving Private Ryan.
- They took a lot of words getting there but, to the Fed's credit, they did manage to take rates to zero and answer the question: "What's next?" I could (and may already have, by the time you read this) flip it and rip it for a trade but, honestly, this is the anti- "looking good!" statement.
- Okay, I get the dollar dropping and gold moving higher. Alas, check out the price and dropping demand of crude oil. Pushing on a greasy string.
- Best Buy (BBY) beats guidance issued a month ago! If you caught it into this number, congrats and take some gains. Having been short the coil and avoided the spring, I'm just watching, both impressed and confused.
Now I'm buckling up my helmet and waiting for the last hour. We've got Ben's Best assaulting the 900 resistance in ways never before seen. Against that, consider the exaggerated trends of the last hour of late. Which side do you take?
You can try anything you want, as long as you've got an exit plan. I've told you mine. You're welcome to share or use your own - but make sure you have it, mate. We're in unmapped territories.
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