Nov 30

Market view updated for 1st of December 2014

Markets has been extremely strong and as I mentioned few weeks ago – dont bet on too much downside anymore this year. It looks like mkts is already on holidays and therefore we could expect a slow steady grind higher for rest of year. Of course mkts is extremely overbought now so a pullback should be expected , but should also be bought long.

1. Gold saw a move up to MA50 and since then saw a sharp pullback on Friday. Hopefully that is only a pullback down to 1170-1180 support before seeing another impulsive rally higher above MA50. Gold must hold the previous 1130s lows this coming week if this count is correct.

2. GDX again showing a bottom formation , expect GDX and gold miners to rally strong into 2015 imo

3. SPX is due for a pullback , after a short pullback we should slowly grind higher once again , dont expect any big fear surprises anymore this year. We were spot on with the fear call in October where I stated that VIX should pop to 20-30 and mkts should sell off. This was what we got.

Conclusion: The conclusion is that I’m not shorting or going long mkts , but im playing individual stocks/sectors for now and especially small cap names cause they are usually doing the best here in December and January which is fantastic months statistical for the small cap sector.


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