Oct 23rd 2014 – Sometimes It Pays To Be Piggy

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Market View:

Another great day to be long the market, although it did wobble at 3pm to close off the highs on rumours of another Ebola outbreak, this time in New York.

However, it is still not time to profit take despite the massive gains of the last 5 days.  As the quote says, when you get it right, you need to go for the jugular, it takes courage to be a pig.

As despite ‘let your winners run and cut you losses short’ being a well-known and accepted recipe for success to all market participants.  It remains emotionally difficult to do.

That being said, as a system trader with high probability of success on my side, there is no thinking to do, you can and will experience all the emotions, but you must just follow the system that has been designed to win every year.

Market News:

U.S. stocks surged on Thursday, lifting the Dow industrials back into positive terrain for the year, as heavy-equipment maker Caterpillar boosted its profit outlook and an unexpected increase in euro-zone manufacturing eased worries about the global economy.

But equities pared gains in late trading as New York City’s Bellevue Hospital said it was testing a doctor who recently returned from West Africa for Ebola after he exhibited some symptoms consistent with the virus. He was the latest of many patients to have been tested for Ebola-like symptoms in the city in recent weeks; all of the prior tests were negative.

Investors fled perceived safe-havens including U.S. Treasury notes and gold, buying assets viewed as riskier as corporate earnings and projections for the future, especially from multinationals, eased worries about the global economy.

Caterpillar rallied after reporting a quarterly profit that soared past estimates; 3M jumped after the diversified manufacturer posted higher quarterly profit, and General Motors also tallied a better-than-expected profit in the third quarter.

Thursday’s economic reports had the four-week average of Americans filing for jobless benefits dropping to a 14-year low.

The Conference Board’s index of leading indicators for September increased 0.8 percent.

Surveys had euro-area businesses performing far better than expected in October, along with a slight expansion in China’s manufacturing sector.

Friday:

Earnings: Bristol-Myers Squibb, Colgate-Palmolive, Ford, UPS, Procter and Gamble, Nasdaq, Delphi Automotive, State Street, Ericsson, Shire

10:00 a.m.: New home sales

News Sources:  CNN Money & CNBC

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