Market Lab Report - Premarket Pulse 5/5/15
So while we have major averages that are narrowing their respective trading ranges which implies a potential break out to new highs, we also have a market that is struggling to find direction amidst the recessionary overhang despite all the QE being pumped into the system. With the Fed now focused on "data dependence," the market is now likely to key on each new economic data release, with any movement centered around the strength or weakness of such data. Thus the Fed, by removing any reference to a target date for a future interest rate increase, has served to increase uncertainty, and markets, as we know, generally do not like uncertainty. As always, we remain fluid as markets can change on a dime. Keep stops tight and take profits when you have them. A 3:1 ratio of gains:losses adds up nicely over a number of months.
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