A poll just taken said that 60% of Americans would like to see EVERY member of Congress replaced. Only 60%? What’s the matter with the other 40%? Oh, they’re not paying attention. Or they don’t think it matters. It does matter and the market is like a weather vane. As this is written futures have just moved almost 13 S&P points (to 1706). That means they are betting on a solution to the debt limit and shutdown. They probably have a spy inside who is keeping them posted.
We said two weeks ago that while we couldn’t forecast the market that we could forecast volatility. We were right about that. But trying to keep ahead of the snakes who are running the government (and the market) is near impossible. We remain steadfast in maintaining that the best antidote to snakebite is the stops we have repeatedly pointed out here.
As the futures movement indicates here a solution will light a fire under the market. Don’t play with fire unless you are very confident. There will be plenty of time later.
We just attended IFTA where Ed Seykota opined that we are sitting at the threshhold of a big new secular bull market. At the moment we are inclined to agree.