Markets didn’t move much last week.
With another week of lunar Green Period to go, let’s take a look at the situation on the Nasdaq (click for larger image):
Things look OK for the moment. My Earl2 indicator is rising nicely, indicating further gains in the coming weeks.
I do the think the market will pause a bit in the final weeks of the year, but 2013 will start with another lunar Green Period, so we could see strong January.
More on that in next week’s blog.
As chart of the week I have chosen the long term US treasury bonds (click for larger image):
Bonds have kept near record levels, but the picture is steadily weakening. The Earl2 is turning down from a very weak peak. Notice how every rally has become steadily weaker (three lower tops in Earl2).
With this market now just barely above its long term rising support line, it can break down any moment.
Nobody should be storing any money in government bonds, especially not at these artificially low rates.
Stay tuned, Danny