Thursday, May 2, 2013

SPY May 2 2013

SPY May 2 2013

Today was a fantastic day because we went through it without once hearing "Sell in May and Go Away." The routine losses of yesterday were recouped with routine gains today. You can try and read things into the candlesticks if you want, but this market has been ignoring candlestick patterns. All it cares about is the uptrend channel.

The big news of the morning was all positive - unemployment claims hit their lowest level in five years, and the ECB were good boys and did as they were supposed to by cutting rates by .25%. It's difficult to believe at this point that any economic numbers will throw this epic bull run off course, because it has shrugged off everything to date, but today's events did nothing to upset the AAPLecart..

The market is in the middle of the uptrend channel. We play both ends against the middle, so all possibilities are open for the next move. As yesterday proved, the market can still surprise you. Much easier to play moves to the channel lines than try to guess moves in the middle. What we are left with is to play intraday moves while always bearing in mind that this remains a trending market where you are more likely to get trapped short than long - until we break the channel.

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