Yet another dollop of meaningless drivel from the Fed impelled stocks sharply higher on Wednesday, goosing this vehicle to a 2107.75 peak that exceeded my rally target by six points. The announcement, something to the effect that the Fed would be less ‘patient’ about implementing a rate hike, was not only semantic garbage, it was also yesterday’s news, since the policy change — that’s what the Street and the news media evidently are calling it — was first floated by the spinmeisters in February. However, the inconvenient fact that it was stale news didn’t stop DaBoyz from triggering off a short squeeze highlighted by a 400-point reversal in the Dow.
When big moves happen for stupid reasons, or for no reason at all, I like to fade the trend. Being an unsentimental sort, however, I would expect Mr. Market to take the S&Ps to at least a marginal new all-time high before He pulls the plug. We won’t be looking to short the Mother of All Tops, mind you — that might be as high as 2228.25 — just to short “a” top that could conceivably be important. In that regard, the nearest Hidden Pivot that looks promising is the one at 2135.25 shown, equivalent to a further Dow rally of about 250 points. I’ve set an alert there and will provide real-time guidance if the Hidden Pivot is hit during regular hours when I’m in the chat room. Keep in mind that if bulls blow past 2135.25 with ease, a new target at 2182.50 would be in play. Take a free trial subscription that will allow you to access not only the touts, bulletins, updates and impromptu trading webinars during market hours, but a 24/7 chat room that draws veteran traders from around the world.
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