BULL or BEAR ??
| Short term (1 week) | Long term (1 month) |
| -- All 3 indexes have rebounded from their 50MA and 20MA lines. This is temporary bullish. -- VXX has came down to the double bottom, its lowest point so far and it can get even lower. -- UUP is at all time low. | -- This rebound of 3 indexes can be just temporary. -- VXX might rebound from its lowest point and if it does, it can be volatile. -- The QE2 is going to end at June. This can be havoc. -- The US debt issue is again on the focus. -- Japan and Libya issues are not yet settled. -- "Sell in May, Go Away…" Remembered? |
Next Week Economic Data:
Input:
- Only housing data and Jobless claim on next week data release.
- Market should not be too volatile.
VXX chart:
Input:
- VXX is again coming to the double bottom. It is again at a critical point. We will watch closely how it behaves from here,.
- VXX has potential to get even lower from here, so if you are shorting stocks, it is wise to tighten your stop loss now.
SPY chart:
Input:
- SPY has gave two days of strong rebound if you observed carefully.
- Right now it has just brake through the daily trend line going upwards.
- Daily 20MA line is bullish crossing the 50MA line again.
- This rebound can be short live, but we will see.
DJIA chart:
Input:
- Intraday go above 50MA line already. This is bullish indicator for DJIA.
- Daily chart rebound from the 50MA and then 20MA line shows that bulls are back (at least for now).
- Behave similar to SPY.
NASDAQ chart:
Input:
- NASDAQ remain the weakest of all three indexes. Its intraday chart still below 50MA line but managed to get up from 20MA line.
- Daily chart however shows that it has also manage to rebound from the 50MA and 20MA lines. This is also a bullish indication.
UUP chart:
Input:
- USD is basically hopeless. ;-)
Sector Analysis:
Input:
- You can see clearly all the charts that was pointed with black arrow. Those are the sectors that are now touching the lower part of the trend line.
- XLP and XLV are the only two sectors that are really strong.
GLD, SLV, Petrol and Natural Gas charts:
Input:
- If you buy GLD and SLV…. You are definitely rich by now. The charts tell it all.
- The natural gas is behaving ok.
- USO is consolidating at the upper trend line. It has more potential to go upward rather then downward.
FXI (iShares FTSE / Xinhua China 25 Index Fund) chart:
Input:
- China index still remain very healthy.
Baltic Dry Index chart:
Input:
- Not much different from last week. So I am not showing it here this week.
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