Bulls and Bears

Yesterday was a good day to follow up on the refresher I provided at the weekend. The DOW has flatlined for four days. It is struggling to choose between breaking up through 14939 and 14765, the high and low of last Tuesday's candle. Yesterday started with a bullish run as the price rose to a high of 14933. Then the bears took over and pulled the index all the way back to 14777 by the middle of the day. And finally the bulls were out again but they only managed to push the market back to 14834.

It was a struggle that left us with no clearer idea of where the market is headed than we had on Friday.

I give no credence to the idea that the market is reacting to news about Syria. A truely nervous market would have moved far more decisively. We live in a world where fear has disappeared from the markets - for the time being. There is still too much cash around and it is in the hands of traders who have forgotten what a crisis is like. I am still sitting on the sidelines and am waiting for a signal.

The UK Market

I have done a bit of exciting research about opportunities in the UK market but more on that when the research is further down the line.

In the mean time the FTSE chart is interesting. It too has flatlined for about eleven days since 20th August. There have been lots of ups and downs but the end result has got it nowhere. It had a big upday on Monday as traders anticipated the beginning of the Autumn season when US traders returned from their Labor Day break. But it has come to nothing as the US market has shown no appetite for a renewed rally.