Market update

My stance on the markets:

US markets (DJI/ SPX/ COMPX) - Bullish with a bit of caution
Commodities (/CL, /GC, /SI) - Bearish until turn up again

Basis of the above stance is short term using daily charts.

Buying Wal-mart stores Inc. right here

Bid 59.57 ask 59.61

Buying WMT right here, ahead of today's open. Bribery and news is noise to me when I look at this long term chart. Stop at 57$ though.

Potash Corp.

Commodities and then utilities are the last to top in a bull market. If we think this bull market is going to top (or already did!), it will not end without commodities and their stocks not topping. We see a long range consolidation in the ag names. I am taking POT as a classical example here but you can pick the basket MOO. I expect POT to breakout soon. In simple terms, buy here and have a stop 7% below. Or buy the breakout above 48$, if you are conservative.

I also think that this bull market has not topped, more of that later in the next post. Very soon though, ok na?

Eur/USD update

Euro/USD topped here in the short term. But, the currency pair formed a positive divergence with MACD in t the last few months. Buy the currency on a pullback, I believe we will see a powerful rally in the next few months. The rally may take Euro as far as 1.4.

Sell short if SPX goes below the trendline. The market is following the path as mentioned in the last few blogposts.