The S&P 500 (SPY) ended a very eventful week not far from where it traded on Monday. The market digested the Greek election, the Federal Reserve's decision to extend Operation Twist and the highly anticipated downgrades of 15 global banks. From a technical perspective, the S&P 500 broke out of a month-long trading range, but retreated back inside while flirting with various moving averages. The market's roller-coaster to nowhere is an indication of confusion and, maybe, some sense of equilibrium between the bulls and the bears with no side gaining much of an advantage. In previous updates we discussed the need to avoid the obvious trade. We want to take that line of thinking one step further and change the way that we are looking at the market and our investment plans.
Monday, July 23, 2012
Market Update: S&P 500 Trading Ranges In The Context Of The Fed, Euro Baby Steps, Oil And Macro Events
[First appeared on Seeking Alpha on June 24, 2012]
The S&P 500 (SPY) ended a very eventful week not far from where it traded on Monday. The market digested the Greek election, the Federal Reserve's decision to extend Operation Twist and the highly anticipated downgrades of 15 global banks. From a technical perspective, the S&P 500 broke out of a month-long trading range, but retreated back inside while flirting with various moving averages. The market's roller-coaster to nowhere is an indication of confusion and, maybe, some sense of equilibrium between the bulls and the bears with no side gaining much of an advantage. In previous updates we discussed the need to avoid the obvious trade. We want to take that line of thinking one step further and change the way that we are looking at the market and our investment plans.
The S&P 500 (SPY) ended a very eventful week not far from where it traded on Monday. The market digested the Greek election, the Federal Reserve's decision to extend Operation Twist and the highly anticipated downgrades of 15 global banks. From a technical perspective, the S&P 500 broke out of a month-long trading range, but retreated back inside while flirting with various moving averages. The market's roller-coaster to nowhere is an indication of confusion and, maybe, some sense of equilibrium between the bulls and the bears with no side gaining much of an advantage. In previous updates we discussed the need to avoid the obvious trade. We want to take that line of thinking one step further and change the way that we are looking at the market and our investment plans.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment