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