Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 7th of March.
With the FED pouring $4.25 billion into the system every trading day, it's no wonder that stocks are moving higher. When this artificial demand and false sense of security stops, what will happen to the markets? No one can tell for sure, but we cannot keep pumping money into this market forever. Yesterday, Federal Reserve Bank of Philadelphia President, Charles Plosser, said “We should begin to taper our asset purchases with an aim of ending them before year-end" and he believes that the central bank should slow the pace of its bond purchases because the potential costs from more stimulus outweigh the benefits.
When the FED turns off the money spigot, watch out!! That's when we get to see if the real economy has any clothes on. Until then, happy days are here again and the bull bandwagon is moving higher courtesy of the FED.
We are going to be looking at three stocks that jumped on the bull band wagon yesterday, they are:
GAP (GPS) - The technical trend is positive for this stock. All of our Trade Triangles are green. We see this market moving up to $36.85-$37, where it should run into previous levels of resistance. Present trading level around $35.50. Continue to monitor the Trade Triangles for early exit signals.
PAYCHEX (PAYX) - The technical trend is positive for this stock. All of our Trade Triangles are green. We see this market moving up to the $37-$38 range from its present trading level around $34. Continue to monitor the Trade Triangles for early exit signals.
VERTEX (VRTX) - The technical trend is positive for this stock. All of our Trade Triangles are green. We see this market moving up to the $52-$53 range from its present trading level around $49.50. Continue to monitor the Trade Triangles for early exit signals.
ADVENTURES IN DELL-LAND
Check out our Trade Triangles on Dell (DELL). We nailed this move to the upside.
CHAOS AHEAD
March 27th - Budget Resolution Expires
May 19th - Debt Ceiling Suspension Expires
Have a great trading day, see you tomorrow.
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Vertex is a good pic, Adam.