Is no news Good news?

Posted by downtowntrader | 9/20/2006 09:48:00 PM | 0 comments »

The Fed didn't throw the markets any curveballs today and the markets really didn't do much after the announcement. Most of the indices ended up pretty much where they were at the time of the announcement. So, where do we go now? Clearly there wasn't a drastic disappointment with anything said, but the markets didn't move up either. The indices are overbought and my guess is that the big elephants are letting retails buy into them. Dr.Brett posted as such earlier today. (by the way, Dr. Brett is doing great work on the Traderfeed blog each morning attempting to gauge the days direction)

"9:15 AM CT - One of the things that got me taking quick long side profits a few min ago was seeing large offers at the highs. It wasn't the kind of fake offers where they flash and pull them. These were large traders willing to have those offers taken. My general experience is that very large traders got to be that way for a reason and, at least for the short run, I won't be the guy who grabs a piece of their 2400 lot. Some slowdown of volume; TICK distribution remains positive, which keeps a bid underneath the market and ER2 particularly."

So the question is, what catalyst will propel the markets higher. I don't have any answers, but with this rally long in the tooth, and the bull cycle long in the tooth, I am being extra cautious. This is one of those times where I am comfortable to stand aside and just babysit my holdings. Maybe I should take a queue from X and drink some margarita's.

Here are a couple of charts I will be watching over the next couple of days.

IBCA is consolidating under the 50sma. If it can move above it on volume, then the chance for a test of the 52 week high are good.

GME has formed a deep cup and handle base and recently cleared the handle pivot point.It might need to consolidate before attempting to breakout.

In a non market related topic, I created another blog where I will post some of my photography and artwork. I eventually will put everything together on one site, but this will have to do for now. If anyone is interested, you can check it out at .

Good Luck,