While we never got to 13,600 again, if you’ve been following along, I’ve been suggesting selling rallies, with tight buy stops. That being said, we traded down to 13,126, which is just 6 ticks away from an old chart low at 13,118.
I’d be looking to cover any existing shorts, and look for a bounce on an over sold, emotional move.
We’ve gotten some iffy earning reports, we are heading 13 days in front of the election.
I just don’t see any major moves, higher or lower between then..
I’d definitely be a buyer at the 13,000 level on the initial flush down.
More than anything, I’d be inclined to sit and not take any big positions over the next 3 weeks. There will be plenty of opportunity over the horizon, but right now, the stock indexes look to be in a sideways, 500 pt trading range, where the best strategy is picking at the edges. I wanted to be a seller up at 13,500 to 13,650… Now that we have rolled over and are looking at 13,000 in the gun sights, I’d look at being a light buyer.
So far, the Dow has been the best performing trade of the past month.. The grains have been very disappointing, with little follow through on any moves, up or down.
It feels like the world is content to wait for the outcome of the election before they take out their check books.
CER