Monday 7 January 2013

12pm update - irrelevant decline

The week has started with a decline, but its arguably nothing less than minor noise. More than likely...a late day recovery, to once again annoy those bears seeking a big move lower. The key 1398 level looks a very long way down from these levels.


sp'60min4 ' retracement outlook



sp'daily5


Summary

The daily MACD cycle is levelling out..finally. Yet, we need to close the day at these levels - and I'm guessing we'll recover by the close.

What is absolutely clear - especially on my bare-bones daily chart, we could drop to sp'1415 by Friday, and that'd do NO damage to what is a very broad..and strong up trend from the 1343 November low.


My best guess..

we churn around until Tuesday, and then maybe..we'll start to see some sort of proper retracement, which should at least break to the 1440/35 area.

So, I ain't re-shorting yet...at least not until late Tuesday morning.
--

stock of the day... AMZN


As ZeroHedge noted, now with a PE of over 3000.

Ironically, if AMZN can just post a loss for Q4, it won't have to worry about such high PEs anymore...since it won't have a PE at all !

UPDATE 1.20pm  Its getting tedious, or maybe that's just me?


On any basis, we're due to cycle back higher again into the latter part of Tuesday.  

Bears abysmally failed to break the key 1398 low last Monday, and it looks like we won't be back under that level for some months.

Back later