Stock Market Analysis

Thursday, January 02, 2014

Happy New Year 2014!

Happy New Year 2014!

How time flies, yet another year has passed. 2013 turned out to be an extremely fruitful year especially with the Santas Claus Rally happening exactly as I have predicted despite all kinds of fundamental issues in the US. The S&P500 closed at a historic high of 1848, gaining 446 points or a whoooping 31% gain year on year! In fact, My Master's Stock Options Picks Subscribers managed to take 128.3% profit off call options on QQQ on 31 Dec, closing off our Santa Claus rally trade nicely. (Click here to see how we did it)

Indeed, it is amazing how the US market has managed to ride on Santa's sleigh through so much uncertainties and fear, especially through the QE tapering. However, the reaction to the QE tapering decision was pretty much in line with my expectations. I did expect a positive market reaction to the QE tapering due to the fact that much of the anxiety building up to the point has been digested by the market through the months of "hinting" by the Fed and that the market has held up nicely during the run up to the tapering decision. That told me that the market did consider the QE tapering to be a confirmation of economic strength rather than a bad thing.

This year also marked the 5th straight positive year since the 2008 crash... so what's 2014 going to be like?

Past trend seems to suggest that we should see a significant rally through most of the year before a market crash towards the end of the year. This outlook ties in with the 5 years cycle the market has been in for the past decade and also the triggering of the Hindenburg Omen. Indeed, it is not hard to see global markets actually doing well for the most part of 2014 as investors start to get onboard with the global economic recovery scenario but the trigger for the next market crash has yet to reveal itself.

So, let us continue to be nimble and ride along with the new 2014 market! Here's wishing all my readers Health, Wealth and Happiness!

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