Just like the Cheetah, it pays to wait for the right opportunity to strike when the market is sick and lame. My account is up close to 30% since Thursday, an incredible performance in such a short space of time.
I will of course continue to be humble and grateful for whatever the market gives me. But it is very empowering seeing the system you have worked so hard on and for so long return in such an extraordinary fashion by design. To be able to take advantage of these bottom grabs again and again is just so exciting and quite frankly effortless for my system. All this on top of the fact that I exited long before the market dropped 10% recently, keeping my powder dry for this latest smash and grab.
It seems to me that the market will be driving back towards 1970, possibly beyond in the next few trading days. I can be wrong, but that is my short term expectation.
However, given the last 3 days of wonderful gains, I expect tomorrow will be sideways if not down a little. But as much as it is tempting to profit take, the system is there to be followed…Don’t Think! Don’t Think! Don’t Think!
U.S. stocks surged on Tuesday, with the S&P 500 and the Nasdaq Composite extending gains into a fourth day, as investors embraced earnings from corporations including Apple, Texas Instruments and United Technologies.
Verizon Communications gained after the wireless carrier tallied revenue above estimates; Coca-Cola and Chipotle Mexican Grill were active to the downside, as the beverage maker and Dow member cited currency headwinds in cutting its growth outlook, and the burrito chain signaled increased growth in quarterly sales would not continue forever.
Benchmark indexes held and then added gains after a report had sales of U.S. existing homes in September increasing to a one-year high.
The Dow Jones Industrial Average jumped 215 points, or 1.3 percent, to 16,615.00.
Pulling above its 200-day moving average of 1,906.89, the S&P 500 advanced 37.27 points, or 2 percent, to 1,941.27, with energy the best performing of its 10 main industry groups.
The Nasdaq jumped 103.40 points, or 2.4 percent, to 4,419.48.
Developments from overseas had Reuters reporting the European Central Bank is looking to purchase corporate bonds on the secondary markets.
And, Data on Tuesday showed China’s gross domestic product grew 7.3 percent year-on-year in the July-September period, the slowest pace in nearly six years. Still, the figure was above forecasts for a 7.2 percent rise.
Other Chinese data showed September industrial output increasing 8 percent year-on-year, beating estimates, but retail sales and fixed-asset investment both missed expectations.
Earnings: AT&T, Boeing, Northrup Grumman, EMC, General Dynamics, Norfolk Southern, Abbott Labs, GlaxoSmithKline, Xerox, US Bancorp, Cheesecake Factory, LaQuinta, Varian Medical, Federal-Mogul, Angie’s List, Ryder System, WR Grace, Stanley Black and Decker, Northern Trust, Dow Chemical, ABB, Yelp
8:30 a.m.: CPI
News Sources: CNN Money & CNBC