Dec 2

Market view for 3th December 2012 – Pullback coming – but bulls in control

All in all – a fantastic week for us with many of our small caps going higher and our swing trade TNA/SOXL in major profits already.

So far markets have been doing exactly as we called it last weeks where we mentioned a coming rally was due , and markets has so far rallied very sharply from 1340 to 1420 in a matter of a few weeks.

This is very strong and suggest that we made a bottom – where I called for a rally to target 1450 which I still believe is possible.

Looking at the euro I see a bullish pattern target 132 on FXE , this suggest to me that markets will continue to rally near term – so I expect a move up in euro with the mkts going higher, especially early this week.

With FXE possible going to 132 , SPX could easy see 1440-1450 before a pullback coming.

I believe a pullback is coming – but it should occur from a bit higher levels in mkts. So the likely scenario I see is an early rally to around 1440-1450, before a better pullback. IF we pullback , it should be a buy able pullback as the rally has been so strong , so usually more up coming after such a pullback.

I remain very bullish coal and solar stocks still and think they have more to go. Bears has been extremely weak and not able to strike mkts down , so bulls in 100% control and no reason to fight them – just follow the trend higher for now.

I’m still not sure if we are going to make new highs , still doubt it – but it is very possible of course, but depends how low we go on the next pullback in mkts.

So all in all – I remain bullish but I think probably most of the rally higher has been seen now , and upside is not as good as before. But I remain bullish and think a pullback is soon due – but after some more upside first. With euro looking very bullish I see it hard for bears to do much damage. I remain long TNA/SOXL swing trades in big profits and lots of small caps also in good profits.


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