As the great William Shakespeare wrote in his masterpiece Henry V: “Once more unto the breach, dear friends”.
That’s what it felt yesterday as my system gave me buy signals across the board. Sometimes trading feels like a war, but ultimately that is not how it should be.
Price is the only thing that matters, and we must find a way to flow with price, isn’t that what nature tries to teach us, just as in the ancient Taoism theory, flow with the energy. So it was highly probable (but never absolute) that we were going to have a relief rally today, but it still takes faith and belief to step into the breach.
I humbly expect that we will have a series of profitable trades here, whether they will be home runs is impossible to say, but it certainly seems that I just grabbed the bottom…again 🙂
Bring forth the greed!
U.S. stocks rallied on Friday, softening weekly losses, as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations.
Morgan Stanley gained after the investment bank tallied third-quarter earnings that beat estimates. General Electric climbed after its quarterly profit exceeded expectations.
The Commerce Department on Friday reported new-home construction climbed 6.3 percent in August, signaling improvement in the U.S. residential real-estate market.
The preliminary read for consumer sentiment in October came in at 86.4 versus a 84.0 estimate.
In prepared remarks delivered Friday, Fed Chair Janet Yellen voiced concern about income inequality in the United States, saying by some accounts, it is near its highest level in the past 100 years.
On Thursday, St. Louis Federal Reserve Bank President James Bullard said the central bank should think about postponing the end of its bond purchases.
Posting its longest weekly loss streak since August 2011, the S&P 500 added 1.3 percent.
The Nasdaq climbed 1 percent, down 0.4 percent from last Friday’s close.
The Russell 2000 edged lower, but scored its first weekly gain in seven.
The 25 percent decline in crude over the last four to five months has translated into a 15 percent drop in prices at the gas pump, which theoretically could drop another 10 percent as we play catch up.
Another positive driver is a drop in mortgage rates below 4 percent, which should spur refinance activities and also boost consumer spending,
News Sources: CNN Money & CNBC