Bigsky Investments®
  • Home
  • Equity Research
  • Blog
  • On Watch
  • Market Data
    • Portfolio
  • 🌲

Post Labor Day Recap

9/6/2014

0 Comments

 

The market keeps grinding higher. The first week in september was a shortened week with no trading Monday. Everyone kept saying that after Labor day volume picks up as the big boys come back from their vacation homes in the Hamptons and the kids on the Eastern seaboard head back to school. Well the market hasn't exactly been flooded with volume yet but I suspect that it can't be long before more players return to their battlestations. Over here in Montana it's beginning to feel a bit more like fall as the air turns crisp and the nights cold. 
As America winds down its QE, Europe begins theirs. I wish I knew and understood macro economic policy a little more because I would like to think that there is reasoning behind some of these moves central bankers have been making other than some overbearing desperate attempt to save struggling economies. Seems to me as a layman that if an economy is strong it doesn't need help from central bankers. You can put the training wheels on the bike, but sooner or later you are going to have to take them off and learn to ride on your own. Anyways as a result of the agressive monetary policies the Euro is tanking and the USD is soaring. Vacation time anyone?
Traders are scared of heights. This is because if you spend much time in markets you eventually learn (most likely the hard way) that what goes up, must come down. The market is chopping around, strength off the back of the ECB aggressive monetary policies got faded three times last week which is a bit of a change of character in the market. However any sell pressure at all would be a change of character as this market continues on its unprecedented bull run. Friday was met with buyers as people were afraid to let the 1% 'buying opportunity' slip through their fingers. I am of the opinion that if you wait long enough you can almost always find a better price to buy or sell something at but traders are not patient people. We must work with what we are given every day and at least for now BTFD continues to reward. The S&P closed the week at an all time closing high. 

Picture

The market is in overbought territory and is working off the last V shaped rally sideways for now. SAR indicator flipped to resistance. Volume is starting to pick up slightly from the summer doldrums. Along with the market, bullishness is at an all time high.

Picture

The risk to bulls is a swift and fierce correction as Americas QE winds down. The risk to bears is an explosive blow up in equity prices as bulls continue their unrelenting stampede and trample bears. The market is a pendulem, momentum is a very powerful force. Just keep in mind that sooner or later it slows and begins to swing the other way. Never get complacent or the market will humble you. Have a good week and make some $!

0 Comments



Leave a Reply.

    Picture

    R. J. Sullivan IV

    Equity Research
    Portfolio Management
    ​Trading

    Picture
    Picture

    Archives

    September 2019
    March 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    October 2017
    July 2017
    May 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    November 2013
    October 2013

    Categories

    All

    RSS Feed

© BIGSKY INVESTMENTS®​

DISCLAIMER: This is a personal web site, reflecting the opinions of its author(s). It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER BIGSKY INVESTMENTS®, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.