The Day after…..Is he Happy or Sad? Depends on how you look at him? Actually this is John Boehner’s reaction to the day after the mid-term elections (see story here).
I share this, because it reminds me of the markets…It all depends on how you look at them! With the much awaited Mid-term elections and the QE2 announcements behind us and sizeable rallies in many areas yesterday, where do we stand?
From a price action standpoint, things looked very solid, before the elections and QE2. I did “Where’s the Beef” (see post here) on election day, with a list of assets that were close too or at highs for the year. The last time I checked, all of us invest in price and I remained puzzled why investors seemed to have a “BEEF” with prices going up, in a very broad array of assets.
Yesterdays large rally pushed the markets to some very interesting price points…Odds are low that markets can all line up like this….YET THEY DO!!!
As I shared above and in the “Where’s the Beef” post, quality price action is taking place as many assets are at or close to new highs for the year. Reaching these very important Fibonacci levels is NOT BAD news at all, yet it should raise a level of awareness that ASSET PROTECTION (stops) is something to have in place.
Keep in mind, if this quality price action continues and these markets break Fibonacci, much higher prices should take place, similar to the “NEW LEGS FOR GOLD” when I suggested that if GOLD breaks fibonacci resistance, HOP ON BOARD, no matter how high you think it is at the time!!! (see post here).
LITTLE QUIZ… Been a good month (last 30 days) for stocks….So with this in mind, which position would have made you MORE MONEY (including todays action at 11:30 central)….Owning the S&P 500 or owning TBF (1x inverse bond fund etf)?
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