It appears DJI & SPX might have made the final highs on Monday Dec 29, 2014. We completed mini step one down of the first step down yesterday and will complete mini step 2 up today followed by a bigger mini step 3 down starting today and continuing on Friday Jan 2, 2015 and so on. After all five mini steps of the First step down have been completed , we will have a rally in second step up to recent highs. However, the trend in the New Year will be down as far as the most probable outcome is concerned. Lack of compromise between the White House and the Republican Congress is another reason which will result in lower markets.
We do not have a Sell signal on any of the indices. Up and down movement of the markets is being done to distribute stocks near the highs. Sell signal will be triggered if any stock or index moves below the 15 day moving average. After that short term rallies can happen resulting in a whipsaw. So in many cases you may wait for the second crossing down below the 15 day moving average before a SELL signal is triggered. This does not happen often.
US dollar may continue to remain strong in the new year resulting in lower commodity prices. Thus deflation will remain a dominant force in the new year and no matter what Japanese, European or US Central Banks do, they will not be able to stop the deflation. Russia will continue to have inflation problems throughout the year because of Ruble weakness during the year.
US equities will go down because the rest of the world will be down and uncertainty and weak economies around the world will not help US equities. Volatility will increase during the year.
For the new year energy stocks will continue to move lower as we do not expect any agreement among OPEC countries. Oil may go as low as $40 and will be the biggest headache for all oil producing countries . That includes most energy stocks in USA.
Natural Gas is near all time lows and will be preferred by more and more utilities to power Electric Power Plants.Similarly trucks will use Natural Gas as preferred fuel and exports in liquified Natural Gas will also increase sharply as we have the lowest prices worldwide.
Gold and Silver completed their 4th mini step up of the 5th step down in the morning yesterday. Gold is ready to go down below $1130 in the next month or so specially if Dollar goes to new highs. Between $1050 and $1100 Gold will be a great buy and Silver will be a great buy between $14.50 to $15.00. Similarly Gold Miners NUGT will be a great buy in the New Year after Gold has made a new low. In the mean time NUGT will make a new low till the rally in GOLD starts.
Russian market is down today and Ruble is around 60 Rubles to one US dollar. RUSS will gain all of the losses it had yesterday. RUSS 3 X Bear Russian market , will continue to go up in the new year going to new highs. After wasting $200 billion dollars to save the Ruble, Russia has decided to let it go down. That is why we feel RUSS will keep on going up in the new year.
DJI
SPY
IWM
TNA NO SELL signal yet
TZA No Buy Signal yet.
RUSS
GDX
NUGT Will go down to new lows
DUST
ERX Going Lower to new lows
ERY Going Higher
UVXY Will go much higher in the new Year
SVXY Will go lower in the new year
We do not have a Sell signal on any of the indices. Up and down movement of the markets is being done to distribute stocks near the highs. Sell signal will be triggered if any stock or index moves below the 15 day moving average. After that short term rallies can happen resulting in a whipsaw. So in many cases you may wait for the second crossing down below the 15 day moving average before a SELL signal is triggered. This does not happen often.
US dollar may continue to remain strong in the new year resulting in lower commodity prices. Thus deflation will remain a dominant force in the new year and no matter what Japanese, European or US Central Banks do, they will not be able to stop the deflation. Russia will continue to have inflation problems throughout the year because of Ruble weakness during the year.
US equities will go down because the rest of the world will be down and uncertainty and weak economies around the world will not help US equities. Volatility will increase during the year.
For the new year energy stocks will continue to move lower as we do not expect any agreement among OPEC countries. Oil may go as low as $40 and will be the biggest headache for all oil producing countries . That includes most energy stocks in USA.
Natural Gas is near all time lows and will be preferred by more and more utilities to power Electric Power Plants.Similarly trucks will use Natural Gas as preferred fuel and exports in liquified Natural Gas will also increase sharply as we have the lowest prices worldwide.
Gold and Silver completed their 4th mini step up of the 5th step down in the morning yesterday. Gold is ready to go down below $1130 in the next month or so specially if Dollar goes to new highs. Between $1050 and $1100 Gold will be a great buy and Silver will be a great buy between $14.50 to $15.00. Similarly Gold Miners NUGT will be a great buy in the New Year after Gold has made a new low. In the mean time NUGT will make a new low till the rally in GOLD starts.
Russian market is down today and Ruble is around 60 Rubles to one US dollar. RUSS will gain all of the losses it had yesterday. RUSS 3 X Bear Russian market , will continue to go up in the new year going to new highs. After wasting $200 billion dollars to save the Ruble, Russia has decided to let it go down. That is why we feel RUSS will keep on going up in the new year.
DJI
ERY Going Higher
UVXY Will go much higher in the new Year
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