Friends
The market has just finished off a nice Monday where we see the S&P 500 breaking through the resistance level that has held most of the summer. Remember, we have been in the trading range of about 1020 to 1130 on the S&P since the Spring and have been looking to see which way the market would penetrate. The early rally picked up steam this afternoon after President Obama held a town hall meeting on CNBC. There was no major headline from the hour-long Q&A, so the markets seemed satisfied enough to continue the rally.
What to do from here? Well even though we have broken out of our range (for the day anyway), I would continue to be cautious and would not be adverse to selling a little into the strength as we have done today at CHJ. Remember, this market can still come up with a good case of amnesia so don’t get too carried away with short-term moves. Don’t get me wrong, I like the action so far in September but it seems we go from one good month to one bad month and October is on the horizon.
Ok, I’ll stop being a killjoy. Let’s enjoy this rally.
