Impressive Push Higher
Beginning the week, I thought the market would move sideways until the employment report on Friday and the Fed meeting December 11th. After two days moving lower, I was unsure. Today changed everything. After three days, the DJIA is now 70 points higher on the week. It is this type of gradual, positive action that will allow the bulls to reclaim the ground they lost in November.
I have always been amused by the reasons markets move in either direction. For weeks, the bulls’ argument has been things are so bad that policymakers must save us. Today we rally 1.50% because things are so good that we will avoid a recession. I may be picky, but you cannot have both ways. To me, it appears to be a market that has decided to head higher and steamroll everything in the way. This is a great place to be if you are reducing exposure. However, from a trading perspective all it does is lead to greater uncertainty and more risk. Shorting here is reckless. Going long may be the same thing.
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I was quite surprised to see such a huge move today as well. The expected wait and see approach for stocks to wait until the employment report did not come to fruition.
Lots of financials really did well today. I’m interested to see if the energy bill really gets pushed thru tomorrow like Congress was saying. If it does, it could hurt oil and help solar. LDK has had a great few days. Wish I could say I bought it at the bottom but at least I’m back in black (for now).