Stocks & Commodities V. 23:1 (130, 116): At The Close by Jayanthi Gopalakrishnan
With the Presidential elections behind us, the “uncertainty factor” that was so often talked about for
several months is no longer an excuse for the market’s unpredictable behavior. Not that this means there is no uncertainty in the markets; there always is and will be. Since the election results came out, the Standard & Poor’s 500 index (the index I watch most closely) has crossed above its 50-day moving average as well as broken above the downward-sloping price channel that acted as a strong resistance level (Figure 1). Now it appears that the next resistance level is the February/March 2004 highs.
In the two days following the elections, the markets saw a significant rally. As of this writing (November 10, 2004), there seems to be some hesitation as the markets decide which way to go next. Perhaps it’s another uncertainty factor. Regardless, this indecisiveness makes it difficult for me to place a trade, to the point where I am tempted to give my eyes a rest and not watch the markets for a while. But as things go, I did have a chart up on my screen when I was fortunate enough to spot an opportunity. I placed a trade on November 9 that met my basic criteria (see my previous
columns for what they are).