Tonight’s report will be short as nothing much has changed from last week and not much action in the market either.
I wrote on December 23 that I am expecting a minor correction by December 27, 2011. ( http://bbfinance.blogspot.com/2011/12/auto-pilot.html ) Although we had a slight dip in DIJA, the SPX and Nasdaq ended the day in Green. Tomorrow morning would be the only last chance of a dip before we go flying higher. I added a tiny little bit to my existing long position as I was waiting for a bigger pull back which did not arrive. Let us see how tomorrow unfurls. However one more buy signal was initiated today, as follows:
As you can see, this has been a very reliable indicator in the past and should run at least for few more days. This is a lagging indicator and is just a confirmation of the existing trend.
AUD is continuing with its continuation pattern and is possibly setting up a base for the spring forward. I expect AUD to move up-to 1.0265 in the next two days and finally test 1.0370 before getting rejected. That will also signal the time to close the entire long positions. The funny thing is, I do not even trade forex.
During my intraday tweet I mentioned that I am disappointed with TBT. I know for sure that US Bonds are on a downward cycle but it is not being reflected in the price of TBT. I hope it also races through the gate in the next few trading days.
Once again, I urge readers not to be biased. The concept of bull vs. bear exists only in the mind of retail investors and traders. For the big boyz, no such silly difference exists. They can be both at different time, sometime switching sides multiple times in a day. Very soon, may be within seven trading days, we will also change our costume and wear the bearskin.
We have sowed the seeds for this trading cycle; the fruits are hanging and getting ready for harvesting. Till the time is ripe, let us be patient. You cannot force the grain to ripen before its time, nor can you open the door of the microwave oven before that slice of pizza has been heated up properly. Try it yourself and you will know what I am talking about.
I am extremely thankful for your show of support and for following me in Twitter (@BBFinanceblog). Till I set up a Facebook page for the blog, the Twitter is going to be my major way of communicating with my readers. Please forward this to your friends and family, who might benefit from unbiased trading. Visit http://bbfinance.blogspot.com/ regularly to profit from the world of finance.
