We have been waiting for the markets to give us a signal on which way it wants to go and we finally have one. Even though this may turn out to be a huge Bear trap - long it is until we get the nod to reverse.
Here are the Q's which broke into new short term high on Friday. You can also see the MACD has crossed the 0 line into positive territory. For those of us that were straddling the 30's are now in the money and this play may now work out if there is some follow through.
Both the Dow and the S&P have similar charts. Almost all the Dow stocks took a jump Friday. I am still of the opinion that we will ultimately see new lows down the road but as the saying goes "want what the market wants".
From the Dow I see 4 stocks that are in true uptrends: MRK, PFE, UTX and T. The rest still look like 4th waves to me.
Currently I am long Q's. I also tried to get on a few on Friday. I was able to get onto ITW. I am also looking at getting long the commodities see below and got into SLV on Friday.
We have also seen a nice bounce off the bottoms in a number of commodities. Corn, beans, cattle, hogs, coffee, sugar, copper and of course oil.
USO, OIL or GSG are some good plays here. I am hoping for some profit taking and will enter.
As far as shorts, the bonds sure look toppy and we may see some nice short action here. TLT is one way to play this.
Well lets hope the New Year has finally brought us some action again. It was getting kind of boring there.
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