Strong recovery in 2014
This is the last trading diary for the year. The newsletter will resume on Monday, January 6th.
By Colin Twiggs
December 24th, 2013 2:30 am ET (6:30 pm AEDT)
The S&P 500 followed through above 1810, signaling another primary advance. Troughs high above zero on 13-week Twiggs Money Flow indicate strong long-term buying pressure. Short corrections such as the recent retracement are normally followed by strong gains, but there is no reliable method calculating targets in an accelerating up-trend. The target of 1910* calculated by the conventional method may well underestimate the advance.
* Target calculation: 1810 + ( 1810 - 1710 ) = 1910
My favorite bellwether, transport stock Fedex, is surging ahead on the monthly chart, suggesting a strong recovery for the US economy in the year ahead.
CBOE Volatility Index (VIX) readings below 20 also indicate a bull market.
We wish all our readers peace and goodwill over the Christmas season and prosperity in the year ahead.
I will arise and go now, and go to Innisfree,
And a small cabin build there, of clay and wattles made;
Nine bean-rows will I have there, a hive for the honey-bee,
And live alone in the bee-loud glade.
And I shall have some peace there, for peace comes dropping slow,
Dropping from the veils of the morning to where the cricket sings;
There midnight's all a glimmer, and noon a purple glow,
And evening full of the linnet's wings.
I will arise and go now, for always night and day
I hear lake water lapping with low sounds by the shore;
While I stand on the roadway, or on the pavements grey,
I hear it in the deep heart's core.
~ William Butler Yeats: The Lake Isle of Innisfree