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Drama, drama, drama…

WASHINGTON, Jan 1 (Reuters) – The United States averted economic calamity on Tuesday when lawmakers approved a deal preventing huge tax hikes and spending cuts that would have pushed the world’s largest economy off the “fiscal cliff” into recession.

By a vote of 257 to 167, the Republican-controlled House of Representatives approved a bill that fulfills President Barack Obama’s re-election promise to raise taxes on top earners.

The Senate passed the measure earlier in a rare New Year’s Day session and Obama said he will sign it into law shortly.

The United States will no longer go over the fiscal cliff of tax increases and spending reductions that had been due to come into force on Tuesday but other bruising budget battles lie ahead in the next two months.

Now with Fiscal Cliff resolved for now kicking in down the road for the next 2 months, there is still the debt ceiling and european Crisis. But hey, if the market wants to go higher, let it go higher. As long as you understand the risk and do remember to put 1 foot near the exit door, you should be ok. I am waiting for nice signals coming soon. What is the catalyst? I do not know but the charts will tell me. Chart reading is similar to fortune telling, ke ke ke. It can predict good or bad news but cannot tell you the reason why it happens.

Technically Dow Jones and S&P500 rebounded off the 200 moving average which is a very strong support as per mentioned in this week’s YouTube.

P/S: I will be doing some website upgrading. Hopefully nothing goes wrong as this website theme upgrading is not so straight forward.

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