BB weekly trends

Trends show:

1

Yen Oversold on short-term basis with a 1 month rally perhaps to end of February/early March.  This is a temporary safe-haven play.

Gas Buddy is falling slowly as demand is weak until resolution of debt ceiling.

The only strategy is to buy on pullbacks to the BB bottom with the uptrend in your favor.  From a ‘theory’ perspective,  the debt ceiling debate will cause a short term correction and most likely be resolved in the first week of March with a pullback of SPY in late Feb.  In this environment, buy SPY on any pullbacks to bottom of bollinger band.

This occurred in the 3rd week of December 1 week before the deadline. Remember Congress has stocks as well so they are also paranoid of having any crashes/severe corrections!  A small correction to 141 can be tolerated for political reasons.

CPI is low at 1.8 (Nov) and in a downtrend!  Today the December CPI will be announced. This is weak with plenty of room for stimulation until the 3.x range.  The Fed has discussed stopping the mortgage purchases but not the treasury purchases! I suspect they will delay any additional action from 45B/mo until the debt ceiling is resolved in early March.

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