Mar 10

Weekend Outlook for 11th March 2013 – Bulls in control – dont fight it !

So far we can say that bulls is back in control as I called for past 1 week with a potential rally to new highs I mentioned was very possible – and we clearly saw this.

We hit my first upside target of 1550-1560 on Friday ,, where we could see a pullback before a move higher. The text book target is 1567-1570 on SPX so I think we will reach this sometimes this week.

So far SPX got buy signals and clearly the bulls in control – bears need a break below 1520 to get back to control short term , so until then dont fight it.

My plan is like last week to play small cap stocks and it has so far been a fantastic week for us with all the small cap picks we had.

1. TLT looks like could soon see a short term bottom, but looks like some further downside in TLT coming before a bottom. This means mkts could rally a bit higher before a top forming.

2. SPX showing bullish signal and I believe markets will hold up strong this week too due to the FOMC “hope” coming, remember markets nearly ALWAYS moves higher into FOMC meetings ,, so lets make this week a test and see if we move higher again into FOMC meeting.

3. Lots of bearish divergences in place on daily , so after this “bull” run is done , I think we get the long waited correction…. but its hard to say how low we go when we start , but lets analyse those stuff when we actually reverse to downside, until then play the LONG side with stop losses in place.

Conclusion: All in all – bulls in control and I think they will hold us in control for this week too ,, mkts showing that we should reach the 1560-1570 target in the near term and after this , we might see some kind of top until then , my plan is to keep playing small cap setups which has been amazing this past week – so hopefully some more.

I like gold stocks early this week as they look like could breakout higher short term with gold.
When this bull run is finnished i’m standing ready to load all I can back into shorts , but until then – keep playing the long side.

 

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