September 14th 2013: Ignoring the news (noise)!

From the sounds of the financial media, we're heading for global disaster next week.  We've got lots of things to worry about:  Syria, Debt, Larry Summers, the FED meeting, quadruple witching, etc., etc., etc.  You'd think we'd be down 30 handles on the $SPX in anticipation of such gloom and doom...but that's obviously not what happened last week.

When I look at the chart of the $SPX, I see a market that's in an uptrend making higher highs and higher lows.  Has the market sufficiently discounted all of the bad news in August and now we're bouncing in relief?  Or perhaps some very smart (or more accurately, very well connected individuals) have a better handle on next week and are betting accordingly?  For whatever reason, the market looks like it wants higher prices.  Other than being overbought and the volume being light (typical), the technicals look solid.

Here's a thought exercise: pick a time period in the past when we ripped higher for a few weeks.  Do you remember the news that fed that rally?  Do you remember what fears were overcome to squeeze the bears and prod under-invested bulls to commit more capital?  Most people can't remember.  I sure as heck can't remember and it doesn't really matter either because the charts tell the story.

To sum up:  the market discounts readily available public news, some nefarious people know the outcome before the news is released, and the charts will conveniently consolidate all of this and more into price patterns for us to trade.

Here's my trade:  long on a close above 1690 with a stop below.

Here's the chart...

For more charts and to read a disclaimer, please visit my public chart list on stockcharts.com....

http://stockcharts.com/public/1109955