Good Morning & Happy Monday!
Markets were higher on Friday it shrugged off the disappointing AAPL and AMZN earnings news. It is clear that bad news in a strong bull market will be regarded as not so bad. On the other hand, when markets are moving down, it is just the opposite. That’s just what happens. Always keep in mind that it is the investors and traders that are making the decisions to buy or sell and when big institutions decide to buy, it takes some time to build their positions. It is the same for getting out of positions when institutions take profits. But when things go bad, there is no getting out of the way of sellers.
This week will be very interesting since the Fed will most likely announce their tapering plans. It is hard to tell at this point how the markets will react. But this morning while futures were higher, the VIX was also higher. It is clear that there is caution out there. Has the market pulled forward all of the good earnings news? It could be that this is it for the year but who knows. No matter how you slice the news, tapering will reduce liquidity and in this market, that is what is keeping it alive.
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
You can also check out my YouTube Channel at SOS YouTube.
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