Saturday, December 10, 2011

To 1350 (not Infinity) and Beyond

As was said in the last post the market has been trending down and going sideways  for the past 6 months along with the uptrend in Bonds. I think we are at a stage where the market could start trending higher and Bond to trend lower , but not in a straight line though (see chart for a possible pattern) . But in the 2nd half of 2012, we could see the market(S&P500)  challenging 1400  and above.

Thursday, May 05, 2011

When Bonds Turn Up Stocks Retreat

Bonds have been in an uptrend for a long time , as the chart shows, it has been in that uptrend for almost 25 years. whenever the bond price bounces from the lower trendline, stocks go into a weak phase and vice-versa. I think stocks are going to be weak for the next couple of months. My guess is that S&P500 will remain weak and go into a downtrend phase, but later it will mount another rally to the 1500's during the election year(2012).