50/200 dma ready to cross

this could mean inflation is coming back and lower prices for bonds and higher prices for stocks

Living.

If we look back at 2010 we can see a lot of similarities.

Stocks were hammered in the first half of 2010 by the potential default of Greece - and for energy stocks, the oil spill in the Gulf.  The macro clouds were removed, and in the second half of 2010, the S&P 500 rallied from down 7% to up 15% by year end.

The Russell 2000 was down 6% for the year through July of 2010.  Over the next five months it rallied 34 percentage points to finish UP 27% on the year.

What about energy?  After being down 12% in the first half of 2010, the XLE (the energy ETF tied to a basket of energy stocks) returned 34% off the bottom and 22% for the year.

Also remember, in Fed tightening cycles, stocks tend to go UP not down. We’re officially five months into a Fed tightening cycle and stocks are basically flat.  

.Patience required.

Since the Fed said the market was not giving enough weight to a rate hike this June, the market has stalled out with volumes drying up considerably on most stocks and few gains to be had.

The greatest market traders of all time

http://www.timesofmalta.com/articles/view/20160523/business-features/the-greatest-market-traders-of-all-time.613051?utm_campaign=Contact+SNS+For+More+Referrer&utm_medium=twitter&utm_source=snsanalytics

markets now

Following the release of the minutes on Wednesday, Fed funds futures rates showed that investors doubled the likelihood of a rate increase from the Fed in June, to 34 percent from 17 percent, according to CME group's FedWatch tool.

However, on Thursday markets rebounded from Wednesday's sell-off, and priced down the odds of a Federal Reserve interest rate increase after remarks from New York Fed President William Dudley.

The likelihood of a June interest rate hike fell to 26 percent after Dudley's speech on Thursday.

stay alert... in the now

Trading

"Identifying a pattern is a relatively easy task in which to gain competence. Trading a pattern once identified – now that is a horse of a different color.

How many times have you heard another trader say (or said to yourself): “I knew that stock XYZ was going to go up, and it did, but I did not make a dime on the move?”

Trade signaling, in my opinion, is far less important to net profitability than is proper trading tactics and aggressive risk management protocols."

Australia’s central bank cut interest rates to a fresh record low as it moves to counter the emergence of disinflation...

Australia's Central Bank Cuts Rates to Record Low

Major averages fell Friday on higher, above average volume, this has marked major market tops in the past such as in 2000 and 2007.

Controlling risk is the most important rule in investing. Should the current correction continue, keeping stops tight and restricting buys to only the best risk/reward entries is wise. But should QE create a floor in the current correction with a resumption of the uptrend, new buy opportunities will emerge. Stay alert and flexible.