Saturday, December 29, 2012

Happy New Year!

It is the last weekend of 2012. Stock market is resting, tired from being whipsawed by never-ending political saga. I like to study weekly charts on weekend, when it is quiet and daily noise does not distract me from the big picture. I care not to get involved in finger-pointing, blaming one or another party for dysfunction, or even thinking about a possible capital gains tax increase. All I worry about is where the market is going next week.
Weak longs, who were selling in panic on Friday, may be chasing the market higher in just a few days. Just like the debt ceiling debacle in 2011, fiscal cliff nonsense is creating an opportunity for a good long entry. Those who can see beyond the end of their nose may be handsomely rewarded.
Pull up the weekly charts. Do they look really bearish? Or is this just a pullback in continued uptrend? Be true to yourself. Trade what you see. And don't forget to change your mind when charts and fundamentals change.

Happy New Year!

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