The S&P 500 gets a little support today and closes at 1260 after nine losing days. Even though the market is up today, it does not mean that we can start to buy and wait for the position to surge. Today's rally only shows that investors feel uncertain about the economy and the employment data coming out on Friday. As I have covered in my previous post that we still need to be careful about the US economy even the US has avoided a default on Tuesday.
The compromise on the Capitol Hill does not change the fact that US has a large gap in its budget deficit. The economy is getting weak and I do not see any good reason for the job market to improve.
So what should we do now? From a pure technical point of view, we are still in a very bearish environment. The Double Top Pattern and a break out of the support line have told us that the market is still negative. Tomorrow's initial claim will likely to be disappointing and investors’ bearish mood will get confirmed.
Gold is still my biggest buy as we can see it makes new high every day. We can also put some value stock in our watch list, such as Google, Apple and Microsoft. These stocks have been brought down by the broad market and they will offer a good return once the market comes back.
The compromise on the Capitol Hill does not change the fact that US has a large gap in its budget deficit. The economy is getting weak and I do not see any good reason for the job market to improve.
So what should we do now? From a pure technical point of view, we are still in a very bearish environment. The Double Top Pattern and a break out of the support line have told us that the market is still negative. Tomorrow's initial claim will likely to be disappointing and investors’ bearish mood will get confirmed.
Gold is still my biggest buy as we can see it makes new high every day. We can also put some value stock in our watch list, such as Google, Apple and Microsoft. These stocks have been brought down by the broad market and they will offer a good return once the market comes back.
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