Jul 7

Weekend Outlook for 8th July 2013 – Markets broke MA50 and setting up for more upside ahead

As I called past 2 weeks that the correction was over and a rally to possible new all time highs was coming. We mentioned this on the lows at 1560 in chat room and was prepared for upside in mkts. So far been following roadmap pretty well and with SPX breaking above MA50 first time after this correction it looks like we could rally higher near term.

My first target is 1650-1680 area , then a possible pullback coming before we make another new all time high on SPX:

Looking at BPSPX its pretty oversold , so there is a lot upside left in stocks according to the bullish percentage. This means mkts could have a nice rally in the coming weeks.

However the closer we get to the German elections in September I think mkts will have another major correction , bigger than the correction we just saw last months.

Gold looks bottomed at around the 1200 and made a possible higher low on Friday ,, we need HIGHER HIGHS and HIGHER LOWS on Gold to form a new trend up , so time will tell early this week if gold bottomed. We would like to see a sharp move higher in gold.

For stocks I still love solars stocks which broke out nicely on Friday and I love Gold miners at those prices. Also coal stocks looks interesting near term.



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