Saturday 1 September 2012

Looking forward to more volatile trading

With Jackson Hole out of the way, we can now look forward to what should be the more dynamic trading period of September-November. Regardless of what the US election result is, it seems December is very likely to be something of a 'Santa rally' period. This would especially be the case if the Bernanke (or his successor) does some form of major QE at the FOMC of December'12.


Sp'daily3 - upcoming events


Summary

Without question, the doomer bears - those few remaining, need a clear break under the 1350 trend line, that links the recent June low, all the way back to the Oct'2011 low of sp'1074.

Until we see a few daily closes <1350' the broad uptrend can be said to be continuing, and the bears should remain very cautious.

As we've again seen lately, unless there is some significant sell side volume, the algo-bots will be able to melt up the market on near zero volume.

Have a good weekend...

Goodnight from London