Overbought continue

As noted overbought signals are all over and we are getting mild pullback. Now the question is how big and long will be the pullback. Recently most of the pullback have been shallow and without much force.

We will see soon enough.

Overbought????

Getting overbought signals around the market BUT last week before the new years I saw many stocks that looked like death patterns forming reversed and traded higher for the first couple of days in the new year. So what do you do here, when in doubt sit on hands-
Still believe we will go a bit higher but more than likely we need to work off these overbought signals to do so. Can we say possible sideway action

Debt ceiling

Debt ceiling news is hitting the markets but who cares really because we really don't want to face the reality that the DOW is worth 4400 and we have a crippling debt that seems not to matter to the powers that be, so just print more money so the economy can be fueled by China, German and Japanese savers.
The cycle continues......

First prediction

I like to make predictions every year- I would say 9/10 times I am correct and here is my first prediction :)

July 2011 Oil has a peak cycle and by the action I have been seeing it is very likely we will hit that $108 area.
We will see soon enough

First week

First week almost 1/2 way in and I am waiting feverishly for it to end. In my years studying the markets I have found that the first two weeks of the year are the most deceiving and one must not way decisions of its action. So with that I am sitting and waiting till the dust clears of the manipulation to drag the unsuspected in.

Area to remember

Area to remember folks is 1286 on the S&P. I think we get there- See previous posts on this area.

New Year

So we start the new year- though 2010 was a challenging trading year I do see some opportunities that might happen. Saying that I think this year we will see the highs for the next 3 years as the cycles predicts a start to the decline in this period.
I will be watching the January effect sectors and see which ones move for a mid February long term shorting opportunity and most importantly I will be looking at the volume to really confirm if investors still don't have the appetite for equities.


Happy News Year