Monday, October 7, 2013

Nothing has changed in the short term

This morning's gap lower has done nothing to change my short term view. If anything I am expecting a few extra points profit before the next pullback. 1695 is where we're headed next and that is where I will unload longs and take a short position. I will determine my holding period based off of market action around that level. Even though I expect 1720 to be a ceiling I can't say I would be surprised if that level is breached at some point this week. The quicker we get some sort of political resolution, the sooner the intermediate term top can be put in. I expect one of two things to happen over the next couple of weeks. The market trades to a new all time high in anticipation of a budget/debt ceiling deal or a deal is announced and we spike into the vicinity of the Sept. highs. Whichever occurs it makes no difference to me. The point is that whatever happens it will probably be looked at with a "full speed ahead" type of mentality from the financial media when in fact, it will be anything but.
60 min /ES

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