Update Stay long

Small cap reference systems behaving very well!

Small cap reference (above) system behaving very well. The signal is not as good as in May 21, but good.

Energy (below) small caps printed a new high, would love to see a bit more zing to the upside here, but it is still positive!

$TLT lost 2% yesterday, happy with the call selling it on Sep. 21.

Yesterday the market traded like a reflation day, that was constructive. So far, the “stay long” trade was right, but now: next play!

Now: the first two or three days are the strongest. What needs to happen now, is that my small cap reference system shows relative strength in down days and that laggards in the port pick up too.

The fed brought clearness to the market, tapering starts (the earliest, but probable) in November and will be done mid-2022. But also: “tapering is not a rate hike”. That sentence has been said several times. From my point of view that is bullish. If they are smart, they taper until mid-next year and then do not hike into a slowdown that’s possibly coming next year to avoid a double dip for the US economy. That’s what I heard between the lines.

Anyway, all that does not matter for a sub 1 Million account. Everything that is going on will show in the tape here and now anyway!

If you have a sub 1 million account: please do not care what is in 6 Weeks. You can turn your positions in a day, so take advantage of the here and now. Only accounts in the millions and billions need a 6 Week outlook! WE DO NOT NEED THIS!

So, what I am saying is, the tape is fine and looks constructive, stay long now, but still be on the watch and watch the tape every day. The here and now tape is all that matters for traders with a sub 1 Million account!

Have a great week and all the best to you!