note: I added this evening update at 11:50PM!
January 22, 2016 Evening Market Update
As promised in my morning video, I posted what ended up being a 10 minute video covering the action for the day. I mention the S&P 500, gold stocks and Facebook. I was attempting to summarize the charts into:
- overall market (S&P 500)
- fear (gold stocks)
- the continuation of the 2 year + FANG rally (Facebook; disclosure, some clients own this)
The bulls held up today so I closed out most of my shorts. My shorts were mainly market related (short S&P and long Vix) except for Intel puts that I closed out after their earnings report.
I don’t think the market rallies too far past the 20 day moving average but with QE4 now on the front of peoples’ minds… In fact, I think enough people are expecting QE4 now to keep me uncommitted.
Interestingly, it wasn’t too long ago that raising rates was the fear. Well yet again, in our fake economy, the market shows central bankers that nothing has been fixed.
If the economy can’t handle a 1% increase in rates, then we are in horrible shape. And this market and economy can NOT handle that. That being said, lets get to the video:
January 22, 2016 Morning Market Update
My market update video this morning on Youtube outlines a possible short term hammer bullish pattern.
Later this afternoon I will post another update because how this day ends will determine if this rally has legs to the 20 day simple moving average or even the 150 day. Or if it implodes next week.
We are playing a lot around this major support area that represents the corrections in 2014 and 2015 and also marks where the market was January 1, 2014.