The FED decision to reduce monthly buying by $10 billion was met with an instant drop in the DOW of 60 points and then the markets decided it was actually good news and the indices all roared upward for the rest of the day and into the close, ending with new highs in the DOW and SPY.
I was expecting volatility today but this was more than most folks imagined.
AND, yes, it was a missed opportunity cost by being in cash today but there are always opportunities in the markets and our goal is a slow steady rise in equity without the high time sweats produced by worries about capital loss.
Today's action was a picture perfect bounce off SPY support levels...see TrendX chart on right...
Is it time to chase these new highs? Tonight's update of the SPY Trader show that once again XIV has gained the upper hand which is usually a signal of continued momentum, at least short term.