All major indexes will rise steeply heading into the passing of the torch then plop like a turd from a constipated elephant. It will be the only significant cycle for the year - the rest flat and choppy. VIX is bottoming around here which I felt it would several months ago. Look for VIX to rise back to 60 levels again after tapping bottom at 36 this week. Look for volatility to pick up again with wider range bars. Should see some resistance on YM around 9320 area and ES 975 area. Short is wrong here.
People who invest will have to pay up for the run occurring right now. If they failed to put funds into the market the last 2 months, they are going to chase this market up higher. Its the nature of the beast. Tonights TV Headlines: "Wall Street Rises Strongly To Start Off New Year" Next week is going to be like adding lighter fluid to a fire.
The dow could surge 2000 points or more this month. I have have written many times before, nothing changed fundamentally with regard to the US economy between now and June 2007. All the selling last year was merely a shakeout. Those who buy and hold will reap massive returns.
Sorry, but it is. You don't have months like Sept and Oct and then have major companies scrambling to stay alive and the govt pulling all the stops to make sure the ship doesn't sink fast if the US was fundamentally strong. Common sense my good man, common sense.
The US economy seemed like shit back in 1982 and 2002, but stocks surged anyway and the economy recovered.
Do you have the guts to put your money where your mouth is and open a long term short position or buy puts? A lot of people talk doom and gloom but they can't back it up with money.