Broke To The Upside

Well we were saying the range on the S&P should be watched carefully, and said it was not long till we broke either upside or downside.

You can see in our LAST POST HERE

We broke to the upside, however I would not call it a convincing break!. The bulls yet again still have the upper hand I think. We are still up past our 1500 level we called months ago, and still the bears do not seem to be making their mark.

Yes, we are still in a bull market, however I can say to you that we are starting to see some very interesting signals on the charts, and a few warning signs that market may soon get a bit tired.


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spx weekend update - spx weekend update and mulling

spx weekend update - spx weekend update and mulling

Over the weekend, I was looking at many charts. AI sentiment still showing us that we are in overbought territory with the S&P 500, however it does not look extreme.

As you can see we are in the sell zone, however on the line chart there is still room for us to wiggle up a bit higher. It looks like for months now the market has been creating a bearish rising wedge, and we must remember sentiment can shift however the first warning shot has not gone off yet, and it is possible we can see higher prices next week. Just a guess.

Our 1500 target has been hit :-) and the market on Friday shot up and is holding for now. The bulls still seem like they are not running out of steam just yet, so we must listen to that for now and forget the crowing roosters out there.

AI Sentiment

Taking a look at the S&P bullish percent, again we are still on a buy situation. We are up at 82.60 but there is no reason we cannot go up a bit more to ***** **VIP MEMBERS ONLY**

As you can see January has been a very good month, and very rewarding to the VIP MEMBERS

spx index

It seems the last few weeks, every man and his dog, and the so called expert pundits have been calling for a top on the market. Then the next week, more bears come out of the woodwork and call for a top again. It has not come yet! Are you starting to see a pattern here. LOL. Although this is not strange behavior, it has been quite entertaining.

Forget the pundits out there. All we need to do is read the charts for now and follow them. That has been working like gangbusters, and they will give us plenty of warning on what to expect and what actions to take next. :-)

Have a great weekend :-)

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Our Wild Prediction - Our Wild Prediction came true

Our WILD 1500 Prediction came true. WOW!

Back on the 13/12/2012 - Last year 2012   IN THIS POST HERE  we gave our wild prediction and said that the market was looking strong and also told our VIP members we were looking for 1500 to come on the S&P 500. 

At the time the S&P was sitting at about the 1410 level. 

Well some sniggered, some laughed, and some were ready to call the crazy farm and wanted to tell of our little tale. :-)

But again, here we are!

And here is the chart after todays close.... We actually closed above 1500.

1500 reached on S&P 500

We actually went up and touched 1503 on the S&P 500. 

The VIP members on our blog did very well, and again I want to thank our members for taking time out of their day to read our blog. 

I do not want to take the credit, I give all the credit to market analysis and technical analysis. When you do these things properly and know how to listen to the charts you can put things in your favour. And that can pay off very handsomely. 

Trade what you see, not what you think may happen. 

Chalk up another one! Drinks are on me! :-)

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spx weekly chart - spx weekly chart update

spx weekly chart update

Many weeks ago, we did predict the market to go up higher. (est 1500 spx)

For proof.... ==> VIEW THIS POST HERE

We were saying 1500 was coming, and believe it or not, on Friday, we got within 2 pts of that happening. LOL.



You can see below on the AI sentiment that the S&P which is obviously EXTREMELY overbought, is still on the bullish side, or has room to move higher if it wants to!

ai sentiment

Taking a look at the S&P 500 daily chart, we have a 'double confirmation' the bulls are still in charge. 

1) We have an inverted head and shoulders pattern that has formed back in OCT 2012 and we broke out of this early 2013. 

2) We have broken the neckline of the inverted head and shoulders and since early JANUARY 2013 we have been travelling in a nice upwards channel, that has not yet been broken to the downside. 

spx daily chart

Even in December we said not to fall in love with the downside, and that was corrrect. There were many traders caught short in early 2013. 

The summation chart is also another good market breadth indicator that gives us a good analogy on the overall sentiment of the stockmarket and indicies. Even though there are many bears who have been calling a top the last few months, the summation goes against all of these pundits, and has been clearly saying we are still in a BUY THE DIP kind of market. 

summation chart

Yes, I understand that right now, things are overbought, and I do agree with that whole heatedly. Yes eventually the market will top out, However it is important to be patient and trade what we see, and not what we think may happen. We read charts first and trade off of them and leave emotions in the background.



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1493 came

well 1493 came on the market we are still going up closer to our 1500 target! WOW only a few points away. Can it do it? 

We seem to be in upwards channel which has not broken yet.

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Wild Prediction - Our Wild Prediction Coming True

Back on the 13th Of December 2012 right at this blog I made a very WILD prediction.

I said that the S&P would be going to 1500. SEE PROOF & POST HERE

I posted this when the S&P was at about the 1410 level. 

At the time, I was laughed at, and people sniggered, when I told some of my trading buddies, even they were starting to think I was crazy, and needed to take some medication. LOL.

But here we are today. Just a few weeks later, and we are nearly at my WILD PREDICTIONS target. WOW! You gotta love technical Analysis.

Right now we are at 1490 and only 10 points away from our wild prediction of 1500. WOW!

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the vix

As you can see the vix is still surpressed, and that is going to give bulls a bit of energy they need.

It seemed that as soon as people stopped talking about 1500, now is probably the time it will come.

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What the charts say

If we take a look at summation, we have not hit a sell signal in the market yet. As we have been saying, there is not reason to FALL IN LOVE WITH THE DOWNSIDE at the moment, no matter what others are saying or telling you to do.

When the charts tell you to buy dips, that is the smartest thing you should do. If you have been doing this and following your charts, you should be doing very well.  That is still what the summation is screaming at us for now. When we get to debt ceiling and fourth quarter reports, in a few weeks, that could be a different story but for now, that summation is still on a buy, and hinting to remain a bit cautious.










If you remember back a few weeks ago, we hinted that 1500 could be coming on the market. YOU CAN READ THE POST HERE . I called it a wild prediction, however with the fiscal cliff drama out of the way, it DOES NOT seem so much of a wild prediction any more.  Some readers did laugh off such claims, but see how 2 days can make a difference on the market.

Infact if we take a look at the weekly S&P chart, you can see how 1500 is not very far away at all now. The band-aid fix to the fiscal cliff did help alot and we would not be surprised to see 1500 come. I guess time will tell.

spx weekly chart

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Wild Prediction - 1500 Coming!

Today is the 14th of December which means Christmas 2012 will be here in 11 days. Wow! This year has really gone FAST hasn't it.

Some of my subscribers were asking for a bigger chart of the S&P chart and so I have blown up my previous chart below. 

I am going out on a limb here, but I think it is possible we will see 1500 soon on the market. Yes! you did read that right! I said 1500 for many obvious reasons if you look back at our previews posts!

We warned a drop could be coming first, and that is what has happened over the last few days. This smaller drop could continue, be we feel it is just a smaller blip move before a larger upward thrust is coming later and into early 2013. 

If we having a look at the SPXA50 market breadth chart you have can notice we have rallied quite nicely off the BUY ZONE in november. This rally was quite violent and quick and after such a move we might like to cool down and sell off a bit. (see above chart)

We are only just past half way, and again that is confirmation that if the market takes a short term break,  there is plenty more room on the upside. And that is also another confirmation that 1500 could be coming on the S&P 500 soon. 

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