2013 Opens With a Bang!
Happy New Year 2013!! Here's wishing everyone a happy and prosperous year ahead!
US market kicked 2013 with a BANG today. The Dow gained a HUGE 308 points today, rebounding off the 30MA on developments on the Fiscal Cliff issue, EXACTLY how I've predicted it last week. Congress made a last minute deal on Tuesday which prevents the US economy from slipping into a recession due to tax hikes. This may come as a surprise to some but I've never any question about Congress being able to come to a solution due to the fact that no sane government will ever watch their economy go into recession after such a hard climb out of it and not do anything about it.
However, if you have followed my blog long enough, you know what I always say after such strong single day rallies. Yes, that we should expect a few sideways or slightly negative days due to short term profit taking. But this rebound has completed the reversal pattern out of the Oct 2012 correction and turned the intermediate trend back up to Bullish. As the saying goes, as January ends, so will the year; 2013 is looking good to be another positive year. 2012 also ended with the Dow up its 4th consecutive year by 7.2%.
For now, the Dow turns an all out bull trend.
US market kicked 2013 with a BANG today. The Dow gained a HUGE 308 points today, rebounding off the 30MA on developments on the Fiscal Cliff issue, EXACTLY how I've predicted it last week. Congress made a last minute deal on Tuesday which prevents the US economy from slipping into a recession due to tax hikes. This may come as a surprise to some but I've never any question about Congress being able to come to a solution due to the fact that no sane government will ever watch their economy go into recession after such a hard climb out of it and not do anything about it.
However, if you have followed my blog long enough, you know what I always say after such strong single day rallies. Yes, that we should expect a few sideways or slightly negative days due to short term profit taking. But this rebound has completed the reversal pattern out of the Oct 2012 correction and turned the intermediate trend back up to Bullish. As the saying goes, as January ends, so will the year; 2013 is looking good to be another positive year. 2012 also ended with the Dow up its 4th consecutive year by 7.2%.
For now, the Dow turns an all out bull trend.
posted by Jason Ng at 3:18 PM
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