Markets had another choppy weak here in January , not much happening on the market front. However we have been playing lots of small caps which is running just here and there. Bios has been on FIRE lately and we made good on those. For now I would keep playing stocks and small caps as long we remain above key supports and January usually a good month for small caps.

1. SPX looks like about to make new all time highs yet again , HOWEVER if we broke 1825 I would expect a pullback to MA50 at 1800. But until then I would stay bullish as transports already made new all time highs. We should follow.

2. VIX is near very low levels and this suggest no fear in markets. I would expect a near term bottom on VIX very soon before it goes higher again , this means we should probably not expect huge upside from here. However they can still “drift” markets slowly higher day after day with VIX being low.

3. NYSI on buy signal but about to get overbought now, this suggest a larger correction could occur soon again, but for now its on a buy signal and could move higher.

4. Gold has been on fire here in 2014 ,, I believe still precious metals bottomed in summer 2013 and a large rally to occur in both silver/gold and miners. Stay long !

Conclusion: All in all – as long we hold 1820-1825 I would expect new all time highs next,, however if we broke below 1825 a pullback to MA50 at 1800 due. So keep an eye on this. I’m at the moment just playing the small caps as they run very hard here in January.