The last week or so has been one of the more confusing tapes in recent memory. Technical levels are overshooting and markets are rangebound mostly trading on sentiment.
What's interesting is the number of biotech stocks that are just ripping to the upside, while there is very little promising individual stock action from other risk on groups.
You can just feel traders getting chewed up and spat out as everyone is anticipating another strong move, whether it be up or down. The question then becomes how long before enough traders are worn out, exhausted or bored by the action. That's a tough one to answer.
Post Fed announcement, there will be strong anticipation of directional movement. Given the recent volatility, last week's choppiness and the tendency of sharp moves around the FED announcement, traders may just shy away from the action. Keep that in mind as we move forward.
Each Fed meeting these days is met with consternation from the crowd. It's almost as if a cushion for the market is built in. We'll see. I don't buy it enough to bet on it.
Throughout July and August Oil was THE BEST trading market out there. Now, for whatever reason, it's not trading so cleanly.
After a now months of basing action, the gold miner space is showing signs of life. Numerous signs suggest GDX can bottom and rally from here. We'll see if that's the case soon enough.
Trade 'em well!
No comments:
Post a Comment