To The Moon

Steady as she goes!

What an influence the Feds has on the market. Despite raising rates by 75 basis points which would have been a downer for for the markets in another situation, the markets $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$reacted strongly and rallied as if the rates has been cut instead. That is how much negativity has been baked into the market such that any ounce of good news or interpretation as good news propel them upwards.

That is of course good for the bulls who have been held back by the bears for the whole year. However now we are approaching the levels I mentioned previously which are the 4100-4300 levels where I believe the bears are laying in wait and where I believe they will go all out to bring the bulls down. Surrender these levels and the bulls will go marching on to challenge the highs which is something that no bull daresay this year!

However, I prefer to be mired in reality than give in to emotions. And the reality is the macroeconomics have not changed much. There aremany bulls waiting though and if we can bringthem out, then the bears will stand no chance!If they continue hibernating though, then the bears will continue marauding. I believe the technical levels 4100-4300 are key and the bulls will get pinned back here to pull back to the 3900 levels in what is hopefully where they regroup in a push higher to break the 4100-4300 levels in what will look like the beginning of a new bull cycle. Surrender 3900-3800 and probability of this being a bear market rally is higher. 

I believe many are looking at the charts and letting the market actions decide their moves. Henceforth it is prudent to watch the market movements rather than preempt them.

I will remain cautious as we approach the 4100-4300 levels and will add to positions on thenext dip while at the same time staying vigilant for any signs of a market flush below 3800.

Stay safe 😊