Week of September 23

Time to buy the breakout, or fade it?

Recap of last week

We were one of the very few people bullish in early September, when SPX was trading 5400s.

We had the data on Sep 4 from Nomura that showed a very high chance for a strong 2 week bounce into Sep OPEX.

I warned that we were front running seasonal weakness on Sept 6.

September 9 I urged again that SPX could be making new highs, and not only that but it would be quite likely (70% chance).

Of course we put our money where our mouth is, because that’s what really matters. On September 11, the day the market bottomed, actually within an HOUR of the market bottom we went long calls, and predicted a rally into FOMC. The market closed green 7 days straight after that live call, to close at new highs eventually. Results for all to see.

Next move for markets