The market is rallying today on China (surprise). There was a negative number that came out of there today… which made their market rally; whatever the negative number was about (it doesn’t matter), it just means that traders are hoping China’s government will intervene with more stimulus.
The same goes for the U.S.
Bad news is good news, because it means the Fed won’t raise rates too soon (most trader’s biggest fear). Conversely, good news is bad news because that leads traders to believe that a rate hike IS coming soon (they don’t think the economy is ready for a rate hike yet).
Well, while I don’t fight the Fed, and know that a rate hike is actually bullish, I’m going to keep playing this game with traders (since this is what the technicals, or charts, are forcing us to do). Long term, I am buying the dips as usual, selectively.
But, short term, I selling some into the rally’s. So, here is the game plan for today. I am starting a new position in one name (shopping list favorite), and trimming some gains from another to raise cash: