Building a Base for The Next Two Phases
Yesterday we outlined how the bubble bursting unfolded to date. The market is now churning within a consolidation base as it prepares to deal with the implementation of the various Obama initiatives. These implementations will kick off in the next 30 days and should by June 1 be showing some improvement in employment numbers. We look for mid August as the next time frame that we will focus in terms of objectives.
Investors and traders can trade this consolidation phase (812 to 862 on the S&P) but our biggest concern is losing position for the upside move out of this area. We view our short gold position as a minor hedge against the current uncertainty.
The EMA ETF Fund NAV was 1099 at yesterdays close.
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