With the Fed decision to keep interest rates down, we need to try to anticipate what effect this will have on the market. The most obvious effect would be a decline in the dollar. If this occurs, there should be a rise in commodity related stocks like oil and gold. This is what caused me to bail on my coal and gold put option trades. I don't normally like to get out of a trade prior to getting stopped out, but this news was likely to directly impact those trades...and it was information that I didn't have when I made the original trade decision. The market volume spiked up when the announcement was made near the end of the day. I'm anxious to see if this leads to a significant increase in volume over the next few days. Barring any unexpected bad news over the next few days, the market should continue to rally. With the VIX at these historic lows, I just can't get myself to buy into any of these uptrends. I'll see if I can find something I like.....but I still can't help but feel that we are due for a big blow that will cause us to drop quickly. I'd like to see how tomorrow plays out. If I see anything interesting, I will try to post it intraday.
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A little success story from the ABC pattern class.
ReplyDeleteOver the weekend in my Fibonacci & ABC pattern study, I noticed in my Life Insurance sector [ I am in the industry & wanted to see how the competition is doing ], that a nice pattern was developing with Lincoln National Life. They broke above both their 50 day MA & 10 day EMA last week at about the 25.5 level.
I bought 5 July 27.5 @2.75 and this morning the stock has spiked up to 29.72 for a profit on paper of $600. I have also entered a stop loss at $3.40.