Sexy title huh! I only do this rarely but I thought it is appropriate, since there is going to be a woman at the top job in the US Fed. How lovely. She is Janet Yellen and she has made it known loud and clear that there is going to be “highly accommodative” monetary policy so that US will have a robust recovery.
OK, I’ve been saying that all along. But still, some people have very creative minds thinking that some good news at the economic numbers is going to cause tapering (causing market falls and inducing fear) … soon, like this December! Now, they already said before that they are looking at 2 things : jobs and inflation. With key measures of unemployment (people with no jobs) at 6.5% and inflation at 2% territory. Jobs generated last month was 204,000. Now try doing this : 204,000 divided by 50 states you get 4080 jobs per state. That’s not a lot! That’s just like how many people are in a shopping mall at one time. Strong recovery is what we want and that’s just not happening yet.
So thank you, Ms. Yellen for clearing that up! Now, it would be a no-brainer for trading positions to be on the bullish side, there is going to be usual ups and downs, but I am projecting the volatility would be low and probably more on the profit-taking side from time to time. I am adding more positions in banking sector that performs strongly in the current markets – tied to housing, consumer, energy and even mining (or the resources sector). We are seeing gold being supported with the “tapering” not happening anytime soon. And it also follows that money flows to growing economies, so emerging economies / stock markets that saw outflows will get foreign inflows due to this.
My preferred strategy is Call Bull Spread and even some covered calls at Resistance at 1 day time frame. My current schedule does not allow me to be at the market at the opening times but rather near closing times for price action ripe for reversal. As always, be guided with your business plan, and system.
Roar on!
SO LET’S ROAR!
