2nd Jan 2011 – My Analysis

BULL or BEAR ??

 

Short term (1 week)	Long term (6 months)
-- Trend line for all indexes are still intact. -- However VXX chart is indicating the search of bottom is in progress. Pay close attention.	-- Long term charts show that indexes still got room to play. -- All sector ETF has not shown any weakness.

 

Next Week Economic Data:

 

 

Input:

 

1. Should not have much volatility in coming week.
2. What is FOMC gonna say this time….. Nah…. It is not important.

 

VXX chart:

 

 

 

Input:

 

1. VXX chart hinting bottoming in progress. However, there is no real indication that it is going to turn now. Pay close attention.

 

SPY chart:

 

 

 

 

Input:

 

1. Intraday chart also shows that Bull is not done yet. Look at the volume before the market close.
2. Daily chart shows that things are still intact for SPY. The trend line is not broken.
3. However, long term chart shows that it has come to another strong resistance line. Correction or consolidation is definitely expected.

 

DJIA chart:

 

 

 

Input:

 

1. Intraday chart shows that minor correction is expected.
2. Daily chart shows that DJIA is still strong. It broke the trend line again at 11500.
3. Long term chart looks like there is still room to grow before hitting the next big resistance. It will be interesting to see that happen.

 

NASDAQ chart:

 

 

 

 

Input:

 

1. Intraday chart shows that it is now doing at least minor correction.
2. Daily chart shows that trend line is still intact. No immediate danger at all.
3. Long term chart shows that it has got room to play.

 

UUP chart:

 

 

 

Input:

 

1. The downturn of UUP chart keep fueling the rally in indexes.
2. Daily chart shows that it has broke down thru 50MA line and now sitting on the trend line. Need confirmation to know whether it is just making consolidation or it has started its down trend.

 

Sector Analysis:

 

 

Input:

 

1. Every sector seems to be ok.

 

GLD, SLV, Natural Gas and UUP charts:

 

 

Input:

 

1. UNG is very attractive.
2. Gold looks topping, but as long as UUP is on its way down, nothing is going to stop the gold bugs.
3. Everything looks ok except UUP, which is fueling the current market rally.