Market Direction Intraday Comments May 22 2014 – Still Up

The outlook for stocks today was for stocks to continue to rise. What we really want to keep an eye on is the IWM and the SPX 1870 level. Today’s economic data has given investors a bit more confidence, especially following yesterday’s Fed minutes which shows an accommodative stance is still well entrenched. The very mention of a rise in rates has investors spooked and each of the last several sell-offs can be directly attributed to talk about rising rates. Yesterday’s Fed minutes seemed to relieve a lot of investors. Personally I do not see anything different coming from the Fed. Janet Yellen seems determined to stay the course and until unemployment recovers far more than it is at present, I doubt much is coming in the way of rising rates. When rates do rise I am expecting very small and slow increases. I still think we are a long way off from seeing 5% and I do believe the bond market is telling us that.

The news out of China showed manufacturing is picking up again and Europe’s service industry showed an increase while their manufacturing was lackluster. But both numbers showed that Europe’s recovery is still ontrack and that helped give investors confidence to buy stocks.

Market Direction Intraday May 22 2014

Today was not a choppy intraday pattern. The morning had a bit of selling at the outset and then stocks jumped. By 11:00 am two new rising highs were in place and I was able to enter the usually 1:00 AM trade with the Trading For Pennies Strategy. More on that will be on the USA members site. Meanwhile by 11:30 a third new high was in place. The market since then has turned sideways but has kept the bias to the upside. It looks at 3:00 that we could see a higher close but I don’t think so. I believe we will close off the highs but well up off the lows for the day. I think a lot of investors will want to take profits here on the doorstep of 1900 (again).

market direction intraday May 22 2014

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