DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
Bears Smoked - Bulls Next To Be Torched?
One thing you can count on in financial markets is that whenever you think you're on solid ground, you are in fact on quicksand. If you thought the 25bps raise was priced in and the market would sell off on the news, you were wrong. If you now think the market will just keep moving up from here in anticipation of increasingly cheap and plentiful money, well, we don't know of course, but, you're probably wrong. Around Fed days the quicksand is particularly treacherous and if you look at the charts below, the most ebullient - the short-term Nasdaq chart - is the most likely to snap back as it hits a key technical level.
Let's walk through our usual larger- and smaller-degree charts, index by index. These Market Update notes are, by the way, actionable if you trade the indices on a long- or short-term basis, and they give you all the market context you may need for single stock investing and trading. We reserve them for our paying subscribers here. If you’re a free reader and would like to step up to a paid subscription you can do so right here: