Happy 420, Bro’s!

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In the world of potheads, “420” is code for blazing tree and all things dealing with kine bud. In the stock market today, the Dow Jones Industrial Average is as high as a kite, hovering up near 420 points for much of the session. In many respects, you can argue that the liquidity being offered up by central banks around the world is a sort of drug that equity markets have been craving to stave off withdrawl symptoms. It is interesting to discuss, but I have to always come back to the fact that I am stock trader and arguing with the market is not what I do best. 400-point rallies tend not to come in the established part of trending bull markets, but they do usually come either off a major correction/bear market low or during the meat of a bear market in a brief counter-trend rally. There is no way of knowing which one it is just yet; Only time will tell.

As you can see below on the intraday chart of the SPY, either you caught the gap up this morning or you did not. Since then, the action has been subdued on the whole. I am not making any moves just yet, but I do have my eye on some potential shorts inside 12631. I will let the market dictate to me as the beginning of the new months tomorrow whether I should continue to stalk them.

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