Saturday 3 May 2014

Another week for the bull maniacs

Despite a brief sell down this past Monday afternoon, the bulls held the line at sp'1850, and broadly battled higher for the rest of the week. The primary upward trends are holding for all the main indexes, and Mr Market looks set to break new historic highs next week.


sp'weekly8b


Summary

*regardless of whether you agree with the micro-count on the above chart, the primary trend is unquestionably to the upside, and with the third green candle, the default trade would be on the long side.
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It was a bit of a quiet end to the week, but more than anything, what is clear...

1.Yes, the economy is showing some distinct signs of weakness, not least via Q1 GDP of just 0.1%

2. The bears are still lacking any decent downside power, as also reflected in the VIX.

3. The broader upward trends - seen on the daily, weekly, and monthly charts are ALL intact.

4. The reducing QE fuel will be an increasing problem for the market this summer.
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For yours truly, it was a bit of a battle this week. I am still trying to 'carefully' play the long side. I hold heavy long across the weekend, since I have much higher upside targets for my 3 oil/gas driller stocks (DO, RIG, SDRL). Hopefully, I can make some good gains next week, and have some extra capital to short this market with, across the coming summer.

*many thanks to all those who commented this week, it is always good to hear from you!

Goodnight from London
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*the weekend update - late Saturday, will be on the world monthly indexes


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Video update from Schiff



Interesting commentary on this past weeks econ data.