The phrase “And the Band Played On” is a reference to a 1980’s film of that title that documented the growing AID’s epidemic and the reluctance of global governments to acknowledge it or to take any action.
It seems apropos to the current market conditions. Despite the age of the current Bull Market (eight years) and the continual rise of important global threats (terrorism, uncertainty in European governments, North Korean missile tests, etc…) the markets continue to rise and put in new highs. The Band Plays On…
- That is the reality and we are trading according to it. At FollowMeTrades.com we are long several positions, and in nice profit on them, and we will continue as long as the technical indicators support that reality. And, we also have short positions in sectors that are heading down and are in profit there as well. We trade reality and reality pays off.
But, we are wary and watching closely for signs of the next major correction. When it starts, we will have warning and will be ready and will take advantage of that new reality, when it emerges.
Gold is still Bullish. Despite some pullback late last week, the overall pattern is still up and we are looking for triggers to take new positions, long, in Gold.
Oil is Bearish. We took a nice trade on USO last week and made some quick profit on the dramatic move down on the news that inventory had increased, despite OPEC and Russian production cuts. Later in the week there was a small recovery, but the pattern is till to the downside and we are looking for more lows to come.
The big (planned) news this upcoming week is the FOCM (Federal Open Market Committee) meeting announcement on Wednesday, 6/14/17, on their latest take on the US economy and their plans vis ‘a vis rate increases. Starting Wednesday, there are significant planned economic reports coming out and we should expect to see volatility increase then. Monday and Tuesday may give us very little price activity.
That’s it for this update. The Band Plays On and markets continue up. Stay tuned and we will give real-time updates if anything material changes.
Follow Me Trades, LLC