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The stock market is in a powerful uptrend, shorts were hurt last week in their positions.
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All short term moving averages are bullish with the 5-10-20 all over the next one.
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Ben Bernanke said what the market wanted to hear and it responded with a buying frenzy.
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Many leading stocks are making all time highs New 52 wk highs $TSLA $BLOX $GOOG $QIHU $SSNI $XONE $AMZN
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Many key stocks are now making 52 week highs $AIG $JPM $NFLX
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We have a key index $IWM making all time highs and a key sector $XLF making 52 week highs.
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The 5 day ema has been support for $SPY for 6 days, $QQQ for nine days, and $IWM for eleven days.
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On Friday France was downgraded and there was hawkish comments from a Fed official and the markets ended in positive territory.
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The market is currently fueled by the FED’s easy money policy and promise for it to be maintained into the foreseeable future. Bulls in the stock market currently have the Bernanke put option backstopping the downside. This is the real reason for the current sustained rally. It looks like just the fear of tapering took the market quickly to the 100 day.
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While the market may pause at these levels to develop a price base I have to be long here with $SPY and $IWM and with my stop at a close below the 5 day ema. If this is not the market to go long in I do not know what is. I may also pick up some $QQQ on any reactions back to the 5 day ema support to hold through $GOOG earnings since the implied volatility is to high in $GOOG options. It’s a bull market you know. This is the current story when this story changes so will my trading direction.
