Well whoever made that VIX bet last week just had their ass handed to them on a platter. The bulls continued to claw back from Mondays down day and keep the streak alive with year high closings including oil. Overbought or not, there is power in this buying and any corrections will have to be horrendous news to create any drastic change in trend.
Obama's after market anounncement of another $2 trillion to the defecit is really no surprise when considering we have almost become immune to these surprises. The question is wether the markets will do much more than a couple of days swoon over this announcement before reloading and push higher as long as numbers like this morning's existing house numbers and more Bernake statements telling us all is just jim dandy again.
And that folks is what will keep the market moving in the short term, the TA chart showed enough pressure relieved on the indicators to keep the black boxes in hyper mode. This could well break DOW 10,000 in the next week and blow all the bears to bits. I never trust history when dealing with the markets, just when you think you got a lock on the picture, you are left in the dust.
Gold had a nice pop today when the pros seemed to making calls of some retracement to the $910 mark. I will be checking my charts closer over the weekend but that may well be a bullish reversal we saw this week.
Happy Friday !
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