Wow, it's been several years since my last blog post but I am now back from another career as a full-time private trader.
The recession ended a couple years ago and we have entered into a fledgling recovery. The markets have been in a nice uptrend over the past year but we are now at a tipping point. The main impetus for today and the near future reverts back to the Fed stimulus that was put in place during the financial crisis.
After much market speculation over the last several weeks with most traders positioning for some sort of taper, the Fed emphatically told us this past Wednesday that the expected QE tapering will be delayed. That gave the market a green light to ramp up.
We have at least 6 more weeks of Bernanke's yellow brick road until the next Fed meeting. And, that is a great thing for a trader! I was nibbling into the pullbacks over the last several weeks as the market was pushing stock prices back down because I didn't think the Fed would be tapering given the most recent economic data since their last meeting. It paid off.
I did sell down a good deal of positions on Wednesday and Thursday's rising tidal wave to capture gains and replenish my cash chest. On Friday, I started a couple new positions and will look to deploy more cash as the weeks unfold into year end. I expect to see a continual buoyant market.
