Market Wrapup, More Dollar Selling

So the foreign markets reacted swiftly last night in their efforts to sell the dollar on yesterday’s FOMC statement and stocks had their best day in recent memory as the DOW finished 219 points to the upside. PowerShares QQQ is looming near 2007 highs at 53.67, The S&P 500 SDPR (SPY) closed at 122.21, the highest close since the 2008 crash, the actual S&P Index finished at 1,221.06 which breaks the previous resistance from earlier this year of 1220 which is also its highest close since 2008. 20% of the S&P 500 hit new 52 wk highs as well. The IXIC and DJIA also made new 52 wk highs.

In the precious metals sector gold closed at a new all time high of $1392 and silver managed to break $26 an oz. The HUI was up over 4% while the GDXJ gained over 7%.

Every technical indicator in this market is telling you to sell. I personally closed a few positions today and have tightened stop losses on the rest. I am not willing to fight the Fed, but I also do not plan on acting defiantly towards the technicals, which are overwhelmingly bearish. I think that within a week or so, we will hear about whichever country will be next to devalue their currency in order to keep up with the US. There’s nothing wrong with being long here, but you absolutely cannot be greedy in this situation. Analyze the market’s next moves carefully and buy only when it is safe.

About Aaron Basile
Day Trading and Swing Trading Ideas, Certified Personal Trainer, Power Bodybuilding, Avid Sports Fan (NBA, NFL)

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