Tuesday is the market is off to the races, DOW 10K here we come! ;)
OK, one day of the markets riding high hardly marks a turn around. The markets could easily turn around and tank. But if the market continues to rise, the short sellers who have been king for 6+ weeks will start to run for the hills, and the markets could really fly high.
S&P500 above 752 with conviction is something I want to see, with possibly a pullback, retest, and continue move up.
Gold and gold miners should get CRUSHED, as I previously blogged. I am revising target even lower than before. No worry, resources are still the #1 play for the next few years. But I plan to be cheap buying back into the miners. I'm talking wal-mart cheap. I'm going to try to sit on my hands until gold crosses below 750 an ounce and re-evaluate. As previously blogged no one wants gold to rise, (including all governments) except fear buyers and miners. Another reason I fear gold will get crushed is every town now has 10 store signs saying "we buy gold". Once gold falls fast enough these mom/pop shops should get panicked, starting a buzz for gold lower. Also I am very concerned that gold could not make significant new highs as the market plunged from DOW 9K to 6.4K in 8 weeks! That should have generated enough panic to see gold at new highs, which we did not.
I am still a big buyer of gold miners, but looking for fire sales prices in the months to come. However, who knows, gold may never get low enough and I'll miss the run up. That's OK. I'll admit I'm wrong if gold gets above $1100 an ounce. I refuse to get burned.
What else is bullish, how about China's trade deficit with the USA has COLLAPSED. This makes the US look much stronger. In November, China trade surplus was 40 billion, last month 4.8 billion. This is an absolute disaster for China and a big push for the USA. But don't be fooled, this will end once inventories are consumed and the US must start re-importing from China.
I previously blogged about lottery tickets on Thursday, quick update on the stocks.
AA 6.24/6.12, F, 1.87/1.85, GE 6.69/8.87, LVS 2.23/1.66, MGM 2.21/2.87, DRYS 3.90/4.47, C 1.13/1.45
LVS is a big loser, I may hit out, but over all not too bad after first major up day. I'm holding all of them looking for 100% profit to sell 1/2 and let the rest ride.
As promised a GREAT video from The Daily show, making fun of CNBC well worth the watch!