The hammer dropped Thursday. The market held firm Friday. And this next week will be seen in retrospect as the week the market bottomed out and started to rise again – at least for quarter 1 2009.
Detractors might argue that Circuit City is laying off thousands and Bank of America might be closing locations and commercial real estate is dead and shopping malls are vacant and….
And it may all be true. But the beauty of integrating fundamental and economic analysis with technical and sentimental analysis is that the big picture appears. The fundamentals of many stocks are certainly impaired. Even Kudlow will find it hard to argue in favor of a bullish economy. But the sentiment is changing. Watch the VIX over the next few months. I anticipate it will be lower by March than where it is now even if not within the next few days. And the technical charts tell stories once you know how to read them. The news is reflected in the charts and the story the charts tell is bullish. The markets should go higher in the next few months.
Can I be certain? With 100% probability, no! But actions speak louder than words. And as the dawn breaks on the coming week I plan on backing the rhetoric with purchases and those purchases shall be on the SSO to amplify the expected gains. And what of Gold…Gold goes higher too. Time to get on board the train to $1,000/oz.
To confidently predict direction is not enough. I need to know I can figure out how to protect myself if I am wrong. That’s how I made money in 2008 when most lost their shirts. All you need is a system that works. And the system I use I also teach. If you’re interested you too can thrive and prosper.
