As another holiday season creeps up on us, I’m sure you’re getting a shopping list ready. But don’t forget to put some stocks on your list because we could just be about to witness a golden opportunity.
But the window may be brief, and it could appear this week, maybe next. But if you take advantage of it you could see some tremendous profits for Christmas…
For the last two weeks I’ve been commentating on what’s happening with the overall market, specifically the S+P 500, and Mr. Market seems to have been doing everything it’s ‘supposed’ to so far.
A couple of weeks ago I explained that the S+P had broken above its trend line (blue on the chart below) which was bullish. Then we had the customary pull back to the trend line before shooting upwards once more. As you can see from this chart, it all happened right on cue:
As both I and the Midas Legacy Trend Alert have been saying for weeks, this market wants to keep going UP, barring any unforeseen events.
BUT, what we may see now, and I hope we do see now, is a brief pullback to digest what has been SIX weeks up in a row. This would be healthy. And it would ALSO be fortuitous, because buying on the next pull back could be your big chance to ride this bull into 2014. Who knows? This may even be the entry point you look back on and wish you’d have jumped on.
To my mind it’s not if, but when this pullback happens.
The pullback may be light, and only have the S+P come back to around 1770, but more likely back to its new support line around 1750. That’s a little way off the current price of 1798, so when this happens, don’t be alarmed as long as it stays above 1750ish. Even then, the S+P would have to dip below 1723 and then 1670 to get me worried from a longer term standpoint, that’s how much of a cushion this market has.
Remember: the bull never offers a smooth ride. He wants to throw you off and make you think he’s a bear. He always wants to shake off the weak, scared, and plain stupid investors. Make sure you don’t fall into those categories, and be prepared to go shopping in the markets too.
Best,
Jim.
