This is what’s happening in the USNovember 21, 2012
This move in the US on the S&P500 is all about the fiscal cliff.
Many think that there is a deal about to be done and if you like they are “buying the rumour”. Technically lots of traders have also seen that trend line bounce off the lows in the weekly charts.
How long it can keep going no one knows and of course they may very well sell the news. The deal if it comes, may not be as good as some think. However this is the move that’s in play at the moment, one thing that could hurt it would be if the Dollar started strengthening in a big way.
All I do is use my trading system to join that move to take profits and go. It gives me great entry and exit points on the chart. That’s how I make those profits. When this move is spent I’ll look for some action elsewhere.
I’m a momentum trader so I go where the action is and leave it when it’s gone. I try and make 100 points a day doing this. In a 2005 trading contest I did more than that for 19 out of 20 trading days.
Now days my trading system makes that even easier for me.