Winning

Winning

Saturday, September 12, 2015

What will the Market do Monday and Tuesday?

The answer is nothing. The market right now is building up a coiled spring in anticipation of the Fed announcement on Thursday. Lets look at the chart of QQQ:

You can see that the market is narrowing down and volume is falling, much like a snake rearing its head back in a display of potential energy: When the decision comes down, this will release the spring, and if the decision is to raise the rates, the spring will blow to the downside. If the decision is to not raise the rates, the market is going to surge up.
On Wed, we might have a little preview of what the Fed decision is going to be as information is going to be leaked a bit in advance on the trading floor. The more top secret info is, the more in demand that information is.
Monday and Tuesday the market is going to do what it has been on Thursday and Friday: Up and down keeping in the narrow range of the above coil. Volume will be low as traders sit out and wait the decision.

What do I personally think the decision will be? I think it would be cowardly for the Fed to keep the rate at 0%. Its not healthy for the market, and its not safe in the event of another crash...you can't lower the interest rates below 0% to soften a crash. When the market was going up a few weeks ago, it seemed to be a no brainer. Then the thing with China and our big big dip. I feel that we are going to have a small raise coming. Just to see how it flies, see how the market absorbs it. And I think things are going to stumble a bit, and that will be our double bottom that traders were looking for, then the market will rise and continue all the way to the crash next year.

Tradinginsider

0 comments:

Post a Comment