Late December Rally Continues

Dec 26, Thursday 6:30 AM Pacific Time
Late December rally is continuing. We are not getting any SELL signals on any of the indices. In fact Gold Miners and Gold ETFs ; GDX  & NUGT  are giving BUY signals today.  Be cautious here. Traders can BUY Gold related  ETFs but not at the opening but later on the day. If you followed our criteria as given in our book , you will be long since last Wednesday Dec 18 for Year end rally and which may continue into the New Year. We will continue to remain long till the market itself gives a SELL signal.

DJI

SPY

COMP  Nasdaq

QQQ

IWM  Making New Highs

TNA

TZA  Making New Lows. We asked you to sell it on Tuesday Dec 17

GLD  Gold ETF  No  Buy Signal

GDX  Gold Miners ETF Gave a Buy signal on Tuesday

NUGT  Triple Bull Gold Miners ETF Giving a BUY signal

If you look at weekly chart of Gold it appears to be giving a Double Bottom sign 

 See the following chart taken from  www.graceland-updates.com   in Kitco

http://www.graceland-updates.com/images/stories/13dec/2013dec24gold1.png

It gives a clear double bottom  using Commodity type rules.
After the open today, SLV Silver ETF  & USLV are both giving buy signals.

SLV

USLV

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Markets Continue to March Ahead

Monday Dec 23, 2013

In  the face  of nominal taper by the Fed, the markets continue to March ahead. There may be seling in stocks which are down  because of Tax Selling.Markets usually are bullish in the last two weeks of the year and the start of the  New Year. Sold out stocks will start rising in the New Year. That includes sold out Gold  Miners. Volume was heavy on Friday because of Option expiration.

Let us look at the charts:
DJI  Making New Highs

SPY  Making New Highs

NASDAQ  Making New Highs

IWM  Russell 2000 ETF  New Highs

TZA  Will make new lows. We gave a sell signal on Dec 13

TNA

GLD  No Buy Signal Yet. Gold made a double bottom around $1182 on Thursday. Weakening today

GDX

NUGT

DUST

US Dollar Index is Weakening today

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As predicted Only nominal Taper by the FED. Rally may Continue after some decline today

Thursday, Dec !9, 2013
 Last Friday we had predicted that there will be no tapering . Tapering yesterday was nominal by 10 out of current 85 billion per month. That is why the markets took off around the world. Will this rally continue  till the end of this month and also into early next year cannot be predicted at this point. Let the markets tell us. We were right when we told you to get out of the bearish position last Friday as we were expecting no tapering.

For now, investors are enjoying  in the clarity from the Federal Reserve, which finally ended the "will they, won't they" guessing game. After its final meeting of the year, the central bank announced it will taper its $85-billion-a-month bond-buying program by $10 billion starting in January. When the economy grows up by 2% and the markets go up by 30%, that cannot continue forever. Let the markets tell us when that will happen
Gold has been the biggest victim so far.
DJI

SPY

Nasdaq (Comp)

IWM  Giving a Buy signal  Can go to at least previous highs

GLD  Gave a Sell signal yesterday

GDX  Gave a SELL signal yesterday

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Christmas Rally Continues

The rally is continuing based upon no tapering  by FOMC today and tomorrow. Central banks around the world  are printing more and more money. Ling term it is very unhealthy.
At 22 percent of the $16.9 trillion U.S. economy, the balance sheet is surpassed by those of other major central banks as a percentage of gross domestic product, according to third-quarter data compiled by Haver Analytics in New York. In the euro zone, the figure is 24 percent, and in Japan, it’s about 44 percent.

Right no the markets like  this unprecedented  easing by the Central banks.

DJI

SPY

Comp likely to go to previous highs or even higher

QQQ

IWM

TZA

GLD

GDX

Gold related stocks are trying to  hold here. May move above recent highs of Thursday

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Is a Christmas Rally Coming ?

 Friday Drc 13, 2013
Most stock indexes gave a Sell signal on Tuesday but Christmas rally at year end cannot be ruled out. Many people are expecting that Federal Reserve will start tapering next Wednesday. We do not expect tapering at this time. Just like we had a rally in September this year when stocks rallied after Federal Reserve  did not taper, we can expect some rally . It will be short lived as the number of bullish advisers has reached above 94%. If you have TZA, you should sell today and get back in next week or later. It is a trading vehicle as it is leveraged 3 to 1. European markets also gave  SELL signals in the last ten days.  Japan continues to devalue its currency. It is now more than 104 yen to the dollar, yet NIkkei has given a SELL signal.

DJI

SPY

COMP wll go back to previous highs or slightly higher

QQQ  Going Back to previous highs or slightly  higher

Nikkei

FTSE has been going down after giving a SELL signal 5 weeks ago. It can give a rally

DAX German Market gave a SELL signal  9 days ago. It can have a rally next week.

CAC  French market gave a SELL signal 10 days ago. 75% upper tax rate does not help anybody

Italian Market FTSE MIB gave a Sell signal several weeks ago

Gold is trying to rally today
GLD

GDX  Gold miners are trying to form a base

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Market Still Has Not Given Clear Cut Sell Signal

Tuesday Dec 11, 2013

Even though SPY is ready to cross the 15 day moving average, it has not happened yet. Spy did come close to previous highs. DJI has not come back to recent highs. It may yet do so. IWM went below the 15 day moving average. But we want to be cautious here as DJI & SPY may still go higher. However if SPY goes below the 15 day moving average, it will be a clear SEll signal.

Here are the charts
DJI

SPY

IWM

TZA  is giving a BUY signal on heavy volume.

 .
GLD

GDX  Gold Miners ETF

NUGT

Gold stocks should be used for short time trading right now. We are not sure whether they made the lows yet.
We like to present here what famous investor Marc Faber has to say about the markets

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Faber:  “This is really a big issue for investors.  As you know, some people belong to the deflationary collapse camp.  In their views the whole debt bubble will implode and it will cause the S&P to collapse to say 400, and bonds to collapse either through default or through high interest rates, and real estate to decline further.

And other people, they think that inflation will accelerate and bring about multiple downgrades in equities, and of course a bear market in bonds.  Now, both could happen, but at different times.  I could imagine a scenario where the economy continues to perform relatively poorly.
“In that scenario the Fed will essentially print money.  In other words, purchase assets.  Those asset purchases may one day spill over into consumer prices.  Don’t forget, if you go to Hong Kong and Singapore, most products are more expensive than in the US.  Why?  Because the real estate in these cities is far more expensive than in the US, and so the retailers charge higher prices -- all of them.
And asset price inflation, in time, spills over into consumer prices.  So far it has spilled over mostly into consumer prices of the super-rich.  But at some point it may spill over into the consumer prices of the middle class and lower class.  And every family around the world knows very well how their health care bills have gone up, how their insurance premiums have gone up, how their transportation costs have gone up, so I can’t understand people who have been talking about deflation for so long.

There is only deflation in the brains of the brainless Fed governors.  Because maybe they don’t shop, maybe they don’t eat, maybe they don’t drive.  I don’t know.”  Marc Faber from www.KingworldNews.com  Blog

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