Monday, April 18th, 2016

Market reverses on Fiscal cliff hopes

Stock have been sliding down for the last four sessions making it a case of hopelessness, but again when the sentiment gets very negative there is always a rally. It did happen today. SPX plunged well below the 50 day line and most major stocks went with it. AAPL hit the 505 level for the 3rd time in last six weeks and GOOG dipped below the 700 mark during the sell off. But than came the news that the Congress will convene on Sunday evening and there are possible offerings of a Fiscal cliff deal. That took the indexes up and ignited the upward move. It is hard to be long here and very risk on the short side. The move surprised short sellers and in the last half hour there was lots of short covering.

If there is some resolution to the Fiscal cliff climate the market will ignite and go higher. Meanwhile it often pays to stay in cash and watch from the sidelines unless you have position which you may have to play the defensive game.

Get more technical analysis, volatility trading, and advanced options strategies, click here to join our Premier membership it will help you daily in your technical analysis, and market direction.


2 Responses to “Market reverses on Fiscal cliff hopes”


Check out what others are saying about this post...
  1. […] Fiscal Cliff was a lengthy spooky battle for December and most of the money sidelined at the time. People wouldn’t indulge risking when there is such a level of uncertainty and chaos. The daily parade of politicians on TV was a macabre drama for free. Every time a politician showed up the market spooked an went down some more. It did clung to each and every word uttered by the politicians in that nonsensical process. No matter how ridiculous that may look like now while looking back, but it took away something from everyone. It was a wasted opportunity and your ability to make money. […]

  2. […] Market Reverses On Monetary Cliff Expects Posted in finance […]

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!