Mind the Gap

Fiscal Cliff averted !! We think not. If the US were a family household they would have an income of $22,000, they would be spending annually $38,000 and have a credit card balance of $143,000. The measures put in place in this latest deal will pay off $100 of the debt ! Hardly averted !! The market rallied strongly on reports of a wall of money moving from the bond market into the stock market, a tad fanciful, as volume for this last week was the fifth lowest for the past year ! By rallying so strongly the market has left a 'gap' down to 1431 and also moved sharply into overbought territory. We will therefore put an order in to sell 7 contracts at the open @ 1463. Should the market rally above 1475, we will sell a further 3 contracts and then place a stop for all contracts @ 1485. The target price where we will take profits on all contracts is @1422-1430.