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How to trade the US debt deal
A US debt agreement was struck at the eleventh hour, ending a 16 day government shutdown and pulling it back from the brink of a debt default.
President Barack Obama signed the spending measure late Wednesday night, which passed the Senate and House of Representatives after Republicans dropped efforts to use the legislation to force changes in his signature healthcare law.
On announcing the deadlock had been broken President Obama said "We can begin to lift this cloud of uncertainty and unease from our businesses and from the American people."
Now the deal is done, how do you trade it, Serge Berger from Blue Oak Advisors says give it a day for markets to react and then make your move. He is looking for better consolidation areas to buy into.
The S&P gained around 3.9 percent leading up to the deal, with 1,640 and 1,645 providing good support levels. but as a buying point he would look to the 1,710, 1,700 area and says we could see 10-20 handle moves in a matter of half a day.
Serge says trading the broader sector will expose you to more volatility so maybe better to focus on specific sectors, in particular the energy sector, which he says has a number of stocks that could spring higher still.
One name on his radar is coal miner Walter Energy
01:59 minutes
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