Still in the trading range.
"The best play in the market right now is an income one."
Again we see the market in a holding pattern, with the market making higher lows over the past 2 months. This would indicate that at present the risk is to the upside.
The market right now is looking for good news, something to push it to new highs.
I am looking for the market in the short term to get up around the 5000 level before it finds resistance, this could take a couple of months and certainly there are a number of economic issue to over come. But short term I am bullish.
Longer term is a different story. The best play in the market right now is an income one. Many investors have moved to cash over the past 3 years, now is a good time to look to buy blue chip assets paying high yields from cash flow. Investors will do well to adopt this approach.
Traders keep an eye on the materials sector, gold and coal being the hot spots. I do expect some volatility in these sectors which will give you some opportunity.