Many worried about Fed,Election & Jobs report ???

Here we are.....worrying about many events which is taking place this week.....

Jimmy the Cramer shouting about 3% to 10% correction this week..but as usual hedging his call..so he is right no matter what happens..typical CNBC approach..talk a lot BUT say nothing ???

Market have displayed tremendous strength in the last 9 weeks...S&P 500 is UP 13.78% while Nasdaq is UP 19.44% in last 60+ days......

SO.... IF we are down 1.5 day due to HFT being nervous..is that such an unusual event?

One must be ready for 1.5 day of selling @ any time......this gives believers another chance to buy some stocks on the cheap.......buying the dips have been extremely profitable since late August...

Lets look @ each of the issues for this week :

-Fed QE2 ...Fed is likely to announce a "moderate" infusion to boost US economy...moderate is a reflection of economy "improving"...economy is out of "intensive care" and is in "recovery room"..how can this be bad for stocks IF things are moving in the right direction....

-Election....US legislators are interested in status quo..no matter which party is in power in house or senate or white house......IF Republicans win in house as expected..then it will be good for the stock market...because Obama has to compromise more...means more "right Wing agenda" which is good for the stock market...

-Jobs report...this job report on Friday is expected to show another job growth.....how can this be bad for stock market......

BUT..all of the above positive may still create selling /weakness in anticipation of each event...Tuesday is election,Wednesday is Fed & Friday is Jobs report.......

SO..IF i have to "guess" Tuesday may be a down day...which will be a good buying opportunity....

I am sure CNBC will go all out to put "scare" in retail about all of the three events BUT we should be more than fine by Friday's close.......

Why ....do i have such a "casual" take on above 3 do or die events.....because stock market is predicting better things to come in a sustained manner......HFT can & do capitalize on any event by putting a day scare..but they are the ones buying @ low of the day.....

NO..i am not worried about coming week......BUT it is up to you to assess your OWN risk tolerance as market can react differently than my take.....so be on guard !!!!

Market has been good for many traders/investors so far..so a 1.5 day of pullback is not such a bad thing.......

Good luck with your OWN strategy but ensure your OWN comfort level @ all times.

BLOG does NOT give buy or sell.

Saleem