Pullback Stalls...

The Feds did exactly what was expected of them today, keeping rates steady and probably for an "extended period" of time (see Stock Market Calendar). Investors welcomed the news obviously as the Dow closed up by 120 points, erasing all of yesterday's losses. This economic recovery is underway without doubt as all the economic data has pointed to so far. In fact, more and more funds are rebuilding their portfolios right now, providing the strength that we have seen so far. The strength displayed so far convinced me that this expected pullback may end up as a short term neutral trend again, for the 30 MA to catch up before resuming the bullishness. The Dow is right now at the edge of calling a short term neutral trend if this week continues sideways without a significant breakout. There are no reversals in my short term indicators from bearish to bullish yet which makes a breakout rather distant. For now, the Dow remains in all out bull trend and is definitely the time to continue to invest in the long term through stocks and hedge downside risks using Married Puts.