01 November 2013

SP 500 and NDX Futures Daily Charts

Stocks had a drift upwards today.

The bulls smell the end of year now that it is November.

Bloomberg TV was touting industrials as the way to play this into year end, despite a big gain for the year already.

I doubt we will see any substantial QE taper until well into next years, but it is a nice theme to play against the short term 'wash and rinse' that is so popular amongst traders.

I do not now see any significant correction until year end UNLESS there is some 'event' that provokes a sell-off. If there is such an event the market has a thin underpinning and may get some downside traction relative to the size and significance of any event.

But that is a long shot bet.

Have a pleasant weekend.