What to do? I bet most of you are asking this question after listening & reading market analysts and managers opinions on the current market conditions. Should you take profits or not? Buy gold, sell gold, will the dollar go up or down? Lets simplify things, the CBO numbers today was go for Obamacare to more than likely pass the House this weekend. Now 72 hours have to pass before voting, meaning this Sunday. Then on to the Senate and most likely to the President's desk. However, you may see the Supreme Court get the last word on this process. But setting aside politics, if this as it appears to be, does pass, what will it mean to the markets? Itz believes that in the short term it will end uncertainty and rally the dollar, which means lower equity & commodity prices. But longer term the nearly $1 trillion dollar package means higher defecits and a lower dollar.
Do you act tomorrow before the possible vote or wait until Monday?
Itz posted on Twitter today to use the KISS method...Keep It Simple Stupid, meaning watch the S&P500 and the 1150 level. Being cautiously bullish, use that support as a sell signal. Itz upside target on the $SPX is 1200-1250, one may also consider writing covered calls against any positions, OTM April's.
Just keep in mind that the Healthcare package still needs a handful of votes in the house, they gained 3 yesterday..BUT lost 2 today. Also, in a few weeks, expectations of a huge Jobs Report number will be a significant market mover. After all it appears that the US economy is recovering and earnings is what its all about.