There were no surprises in the Fed announcement. They plan to stay the course announced at the last meeting and reflected in the minutes. The Founders Group sold our remaining call debit spreads on the Fed announcement, exiting at 4444 on the index for 151 points per contract. We purchased these in the Monday downburst at 4293.
Both the Founders Group and the Navigator Algorithm are now 100% cash. I am still anticipating a retest or attempted retest of Monday’s low. Whether or not that occurs, we need to see a follow-through rally with institutional buying to confirm that Monday’s low is solid.
My overall concern is that we have pricked the market bubble, and a secular bear market could be underway.
I will keep you posted.
A.F. Thornton