Did the bulls take control of this market again?? Nope! Not yet!!!
What moves markets? Volume? Price?.. NO NO NO my friends…
Now that expectations of Ben keeping his finger on the printing press are confirmed, we have this rally. Wonderful.
So what’s next?
THE SEQUESTER. This market is pricing in a last minute deal but guess what folks?? Probability says it won’t happen, and if you’re an experienced trader, you know that solid trades are based on probabilities. Here’s why it won’t happen: The Republicans want the sequester to go through.
Republican Congressman Paul Broun (R-GA). “I want to see it go into place.” [Cherokee Tribune, 2/9]
Republican Congressman Mike Coffman (R-CO). “I don’t think going over the fiscal cliff would have been a huge deal” [kdvr.com, 1/02/13]
Former NRCC Chairman Tom Cole. “We just had additional revenue for the federal government, so I don’t see any way in the world the sequester won’t happen either as written or renegotiated or reallocated cuts.” [Talking Points Memo, 2/05/13]
Republican Congressman Scott DesJarlais (R-TN). “Sequestration needs to happen…Bottom line, it needs to happen and that’s the deal we struck to raise the debt limit.” [Cleveland Daily Banner, 2/1]
Republican Congressman John Fleming (R-LA). “The sequester is law. Those cuts happen no matter what. We’re willing to hang in there and insist that those cuts go into place…” [NHPR, 1/30/13]
Republican Congressman James Lankford (R-OK). “greater chance that they’ll be implemented than not at this point.” [Politico, 2/13/13]
So my friends, keep those shorts on (those of you who had the balls to stay in) and you’ll be handsomely rewarded.
No matter if we gap up or down tomorrow, tomorrow will be RED. SPY target 148.