November 1st Daily Market Comments

The tax plan delayed for a day, bad? Today’s bullish trading in the markets may be the acknowledgment that a tax plan is about ready to be presented. Whatever the reason, it doesn’t matter. The markets continue to demonstrate bullish sentiment. Is this exuberance at the top? Less likely, due to the fact that the S&P 500 and the Dow have been in a sideways consolidation for the past week and a half. If today’s bullish trading remains strong going into the close, that would indicate the next leg of the uptrend is likely in progress. The trading strategy remains the same. Stay predominantly long but have some short positions in the portfolio as a safety factor. There are numerous chart patterns providing good trades in both directions.