Even though the market is closed today, I have to tell my readers something very important. The market right now is looking for excuses to buy and for commonsense to prevail. The market and the charts are hinting that a patch deal is done so again the Moron politicians can again 'kick the can down the road' for another few weeks.
My thoughts right now are that a patch deal will be now made on the market, and it will bring a sigh of relief to the markets, and market participants for the short term, and we will probably see more buying in the next few weeks.
There could be a perfect storm coming, which will happen if a patch deal is done in the next day or so.
In about 2 months time, you could get a situation where a perfect storm scenario could develop, due to the fact that this time period, FEB - MARCH 2013 the leaders of the US must really make serious decisions about cutting spending and increasing spending, also you have the US hitting their debt ceiling at the same time, and they will NOT be able to just patch these bigger problems, and they must put their foot down and make real hard core definite decisions.
That could cause serious problems for the economy, employment and also the global STOCK MARKETS.
Right now the charts are still looking positive and should be ok, if a patch deal is done. But as traders we must keep a close eye on what happens in a month or so, as it is my belief the market is the most susceptible for damage or wild swings, and we must keep on our toes.
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