confusion sets in

confusion sets in

confusion sets in this week as investor are getting nervous about a US default. Well who knows if that will happen, but If you look back you can see these morons on capitol hill always leave things to the last moment, and it will be no different this time.

Ever since [Larry] Summers dropped out, Yellen's name was what people were expecting—so the market likes the nomination, but it wasn't necessarily a surprise analyst at Schaeffer's Investment Research. Also, the ongoing woes of Washington are taking attention away from Yellen's nomination.

I think in the shorter term, there appears to be a couple of obstacles that will prevent any real market conviction. Until the government reopens and the debt ceiling debate is settled, the market will be probably unable to develop any bullish momentum.

You can see this in the market, take a look at the DOW JONES that chart still looks pretty bad technically. It can't seem to keep its head above water at the moment.

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The Dow Weekly Chart

The Dow Weekly Chart

It is always good from time to time to step back and take a look at the weekly charts.

Taking a look at The Dow Weekly Chart below and keeping analysis very simple, we can see 3 interesting things.

1) We are in a solidified uptrend longer term. There is no doubt about it. When you see a chart go from the [ bottom left to the top right ] it means you are in a "BULLISH MARKET" not a bearish market as some bears out there are yelling and screaming right now.

2) The Dips on the market in the last few years only seem to last several weeks, and then we simply resume back to the upside and see higher prices. 

3) The dow has been in a massive upwards channel and it has broken out to the upside, the resistance on the top of this channel now seems to be holding as SUPPORT. 

dow weekly chart

Make no mistake about it, the market is still doing well. The bulls have been winning overall on this weekly chart, and is suggesting that longer term we are more likely to see higher prices come on the market.

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spx update - the latest spx update

spx update

Our VIP MEMBERS are out of the market, with some nice gains, 90pts infact. Very nice indeedy.

The markets in the next several months are in for a nice WILD RIDE I think. This happens every time we get conditions like we are seeing, so its gunna be very lucrative to those who know what they are doing, I am sure.

This is no doubt the S&P chart right now is looking very healthy. See how we bottomed with the INVERTED HEAD AND SHOULDER and now we are travelling up in a nice upwards channel, that has not been violated for now.

There are many bears out there, since 1450 screaming for a crash, however our VIP MEMBERS were able to do very well on the upside while all this screaming went on, and I have a felling there is more movements on both sides of the market to profit from.

For now, the market more bullish, but a key note here is it is very overbought, and traders who are late to the rally party do not know what to do.

spx daily chart

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bullish flag - bullish flag on dow jones

bullish flag - bullish flag on dow jones

If I was a gambling man, I would say we are about to see a pop higher on the DOW JONES. The coiling we have been seeing the last few days could have turned into a bullish flag.

That means we could be expecting a breakout of the flag pattern seen below and higher prices are coming in the next day or so, at least.

It seems the BULLS have certainly not lost hope yet.

bullish flag on dow jones chart

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indicies holding

Looking at the S&P 500 it seems that the indicies are still holding well. They are still coiling and we will need to break the 1460 level to regain some strength. There is a possibility we might see some rallying into the end of week. There are no guarantees, but that would give the bulls a bit more encouragement, and our targets up higher would then not be that far off.

The Russell has already coiled and the bulls came back strong by the close today, so it may be a tell tail sign that the S&P is about to do the same. The russell even though not a leader of the markets, can preceed the S&P so the next few days will be interesting.

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risk on risk off - is it risk on or risk off

weeeeeeee! Up We Gooooooo!!!! LOL :P

The S&P is up over 70 points in 3 days. WOW! IT has been a complete BEAR SMOKING to the upside here.

We warned our readers to not fall in love with the downside, when we were in low volume holiday trading and now you can see why :-)

Today was a good day in the market. MOC we had almost 7 billion volume to buy. Even though the markets are overextended, they can remain that way for a while. Bears have really been creamed in the last few days, and probably lost all hope. LOL :->

What is happening right now, is that we get all these little FALSE sell offs, and that has been tricking the bears. They have been trying to test the market on the sell side, they put in their buys stops, we rally up higher, then their stops go off like a rocket and that gives us more of a boost higher!

When you have NATURAL CASH buying or buyers in the market, like we do have right now they send us up higher and keep us triggering the buy programs and or buy stops up overhead. That's what I saw many weeks ago, and warned our readers and that is why we keep ripping to the upside.

Over the last 4 days, smart money has put $5.5 billion dollars to work in the broader markets. In laymen's terms this means in the short term, the markets are most likely to go HIGHER. YES!

I guess we can say that there is a little bit of risk here also at the moment. The higher the market goes up without any serious pullbacks, at some point we will get that pull back and it will probably be a good sized one.

Now we are above our important levels of 1440 and 1450, it means that we are possibly making our way to the 1485 - 1490 now, so prepare yourself. :-)

Already our members are off to a flying start for 2013, and we are only a few days in. :-)

Happy trading :-)



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Weekend Update

Weekend Update

Well what an interesting OPEX week huh?

Even though we saw a very larger mini flash crash on the market in globex the market recovered quite well.

Take a look at the NYSE McClellan indicator. It hit new highs this week and also pointing in a north direction at the weeks end. The bottom of this chart you will notice that summation is still BULLISH at this stage, which is a buy the dip scenario.

NYSE Chart

Take a look at the 60 minute chart. Even with that big sell off in globex the S&P went down right to very nicely intersected trend lines, and a nice rising support. The stochastics is confirming after this happend, we went into oversold mode, and soon after the market tried to bounce a bit. We are remaining in this channel for now, and we will wait to see if we can hold in this channel next week. 

SPX 60 minute chart

 Even with the mini flash crash you can see how this dip was bought back quite extensively. We smelt bullshit from as we slip slided down, as it was the end of the world date, and this move did not feel right at all. And as you can see, we went down to the 1390 level, investors starting panicking and then it was bought up back in literally minutes.

Such a movement makes us skeptical, especially in opex, and would not be surprised to see holiday reversals (more up coming on low volume) to play out starting some time next week.

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Bonds Building - Market Still Tired

Well another red day on the market as we hinted at in the ( VIP ELITE GROUP HERE )

After a few weeks of bonds being very messy, alot of the bonds traders are jumping for joy as the chart has cleaned up a bit. Have a look at the weekly chart on BONDS below. It seems to be forming a bullish flag at the moment. It has not broken yet, and is only "looking" like a bullish flag, because it must break out of this pattern first for more buying to come in. That will put even more pressure on the market.

With the strength in bonds, the market (nasdaq) has now broken out of its upwards channel and the bottom resistance line, and continued down today on WEDNESDAY. If we look back it is obvious that we have not see 3 or 4 down HEAVY down days in a row, so my guess is that the bears still have the upper hand, but there will might be some sort of bounce coming, but we will probably have to wait till next week to see this happen, and also see how bad the bulls want it! :-)

The sentiment right now is still with the bears, and our breadth indicators are confirming that. Happy trading :-)

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