It is the last weekend of 2012. Stock market is resting, tired from being
whipsawed by never-ending political saga. I like to study weekly charts on
weekend, when it is quiet and daily noise does not distract me from the big
picture. I care not to get involved in finger-pointing, blaming one or another
party for dysfunction, or even thinking about a possible capital gains tax increase. All I worry
about is where the market is going next week.
Weak longs, who were selling
in panic on Friday, may be chasing the market higher in just a few days. Just
like the debt ceiling debacle in 2011, fiscal cliff nonsense is creating an
opportunity for a good long entry. Those who can see beyond the end of their nose
may be handsomely rewarded.
Pull up the weekly charts. Do they look
really bearish? Or is this just a pullback in continued uptrend? Be true to
yourself. Trade what you see. And don't forget to change your mind when charts
and fundamentals change.
Happy New Year!
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