The U.S. is not currently at war with Syria, manufacturing activity in China and the eurozone is ahead of expectations and M&A activity is heating up (MSFT’s $7.2 billion bid to acquire NOK’s handset business and VZ’s $130 billion bid to buy back a 45% stake in Verizon Wireless from VOD). The S&P 500 is up roughly 1+% this morning. During the course of September, we will see what happens in Syria, the FOMC meeting, the German election, the Federal budget debate, the debt ceiling debate and the need to nominate a new Fed chairman.
The Delta Market Sentiment Indicator (MSI) is very close to the 50% mark which delineates Bullish from Bearish. Having the indicator so close to a crossover point makes current events even more interesting as we could be at the start of a buy-the-dip short-term pattern or an intermediate-term sell-off. From an investment standpoint, patience is the key to avoiding over-trading and catching the majority of bull markets while avoiding the most severe bear markets.