Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 2nd of October.
Not to get too political, but I believe the markets are going to be in a holding zone for the next day or two waiting for the first presidential debate between Pres. Obama and Mitt Romney, that takes place on Wednesday.
Here's a question for you... Who, in your opinion, is more important? Pres. Obama, Mitt Romney, or Ben Bernanke?
From the market's point of view, I would have to say that Ben Bernanke is more important than either President Obama or Mitt Romney. Bernanke and the Fed are committed to pouring more money into the equity markets with their "QE3-print-more-money-and-to-H#ll-with-the-future-plan". I guess they figure that we can find another solution to the problem later … YEAH RIGHT!!
Equities based on the FED are still in a bullish phase and we have an upside target of $1,550 on the S&P 500 some time next year.
Most traders have written off the Euro, but our Trade Triangles are saying that we are in a bull market, at least for the moment, and the dollar is the one with the bigger problems.
Inflation Watch: Pressure is building on the Reuters/Jeffries CRB Index. Inflation will be arriving in 2013.
Wild Card: Without a doubt, the wild card for everything is the Middle East. We see no positives on that front.
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
Excerpted from the September 30 edition of Notes From the Rabbit Hole:
