This was a BIG week if you were bullish markets , as I expected in the last weekend outlook report last week , that a possible RALLY would occur.

So far we pretty much nailed the rally and were heavy long both long ETFs – but also small caps.

Markets did end up above 1400 again – and it is only 1 week ago we were down near 1340 , so it is a really impressive rally by the bulls.

It looks more and more like we might see new highs on this rally , but I’m still not sure – however I think there is more upside left, as I believe dollar is going lower and euro is going way higher here.

1. Dollar might still have a very bearish pattern , if it plays out, lots of downside in dollar yet and markets could easy go to new highs then , but I might be wrong about the chart pattern.

2. Euro would then fly a lot more , possible pullback with mkts first – but still believe rally is not done.

3. The TEXT BOOK target is SPX 1438-1440 or SPY 144 so AT LEAST I believe we will see this level sometimes in the near future ,, and then we might have a bigger pullback coming up.

Now people understand why I told people to buy the dips , especially as we moved below 1370 and into 1340s I told all members to buy all they could possible in this area and 1 week after we are now above 1400 again , so big profits made on long ETFs. I remain long myself TNA 51.5 and SOXL 23.88 both in nice profits already ! I got lots of bashers telling me markets would go a lot lower 2 weeks ago when we were at 1370-1340 area and they bashed me because I kept saying for few days to keep add the dips in this area, now they are all quiet 🙂

Conclusion: The conclusion is – that this rally is NOT done imo , a pullback or not – we should at least hit my upside target of 1440 or so, I’m still not sure if we make new highs or not – but after this 1 week big rally there is a good chance that we might make new highs sometimes in December.

Remember the statistics is also getting more bullish for December and January. I remain heavy bullish on solar and coal stocks near term , especially coal. I’m long ANR and JRCC as coal stock plays for next weeks which both looks very bullish.