Outlook December 13
Posted by Danny on December 13, 2010
The recently finished Green Period recorded a 66 point gain on the Nasdaq index.
Over the last 18 months only 2 Green Periods have not been profitable.
See our performance page for a more detailed record.
Meanwhile our cycles seem to remain nicely on track.
As we said a few weeks ago: clear sailing till mid December and an upside target for the Nasdaq near 2650.
So here we are with the Nasdaq at 2640 as of last Friday.
But now we have gone into Red Period again, so more caution is warranted over the next 10 days. I can easily see the market stall at these levels, since we are bumping into probable resistance levels.
Here we have our current chart for the S&P 500 Index (click for larger image):
Overhead resistance is likely at 1250 on the S&P, while on the downside the first major support comes in at 1180. In other words: the risk/reward ratio for bullish positions does not look very good to me for the moment.
So, personally I am taking some profits here, and will watch from the sidelines what happens in this Red period.
If we come through this Red Period without any significant losses, then we are setting up for a January peak.
Of course we will discuss that in next week’s Outlook.
Be Well, Danny
LunaticTrader 
vinod said
Danny,
Great !!!! let me wish A wonderful,healthy,prosperous Merry christmas & very
Happy newyear !!!!. your posts have been Gre–ee–ee at like the way tiger says on that cereal packs. can i ask you one question though with newyear approaching do you see any worry about inflation as it is showing up in CHINA,INDIA,BRAZIL and with all these paper money when i go to grocerry store i am paying more for almost all the daily living items and quantity is almost onethird of what i used to get. if somebody says there is no inflation i do not believe it but when it is going to show up for Fed to start worrying about.
thanks again,
vinod
Danny said
Hi Vinod,
These governments have become so rotten to the core, that you can’t trust any information that comes out of them.
For some real economic stats calculated in the old fashioned way, you can go to this site:
http://www.shadowstats.com
The page with real inflation data is here:
http://www.shadowstats.com/alternate_data/inflation-charts
Cheers,
Danny