You have to love this market. Two weeks ago the market sold off as soon as the Fed changed their ‘considerable period’ statement to a ‘patience’ statement. Today, as soon as the text of Greenspan’s speech to a House committee was released the market shot higher. The catalyst? Talk about being patient to raise rates. Ah, the madness of crowds. Here’s a chart of what the S&P 500 has done during all of this:
To add to the madness, Greenie actually specifically stated that eventually rates WILL have to increase to a more neutral stance. Two weeks ago, that alone would have probably kicked off a new bear market. This week, with all the other soothing words, the market celebrates! The market definitely seeks the news that accomodates its current mood.
glad to see your short holdings have remained at “none” this whole time. i haven’t been able to find many short candidates for the swing trading pick, but i’ve found dozens of long candidates every day.
It was difficult to not jump on a few shorts. (One of those tough decisions you wrote about yesterday.) I had many of the shorts on my list trigger over the last 2 days, but since the longs I was in weren’t dropping that much I figurered I’d better just wait for Greenspan to make any drastic changes to my holdings (besides getting stopped out of course).