If there is another leg up ?

While the future is unclear, what if there is another leg up?

Lets look at two charts:- one of $NIKK(Tokyo index) and the other of BK (Bank of mellon NY, representing the regional bank space in the US). The patterns on the long side don't look complete. Especially, bank of mellon seems to be in a long contracting triangle on the cusp of a break out. Both present viable long ideas in the intermediate term (weeks to months) should a break out occur.

Year end look

The nasdaq seems to have broken out of a coil upwards. However, the put call ratio is in extreme bullish land. While this doesn't mean immediate decline, they all point to caution.

Our intermediate term read on the markets is as follows:-

come january - we may have a false breakout out of this tight call pattern to flush out the stops (as we have repeatedly harped since the 1050s a new recovery high into 1140s) and then a downwards to sideways correction from Jan 1st week into March, to be followed by the

seasonal summer rally into June-July 2010 followed by some sort of important peak in July 2010.

This is all based on highly speculative cycle work. As for our positions, we are pretty light in our PF, playing only a few names like DIN, SCHW, AB, ACH for quick long trades/scalps.

SWI, SWSI, CENX, YGE, GNK, MOS have served us well the past two months. We hope you enjoyed our calls too.

Dec 12

CENX and ACH acting as expected. We will be taking off for a few weeks into the end of the year. Happy holidays.

Dec 8

Oil is where we like it for a long. We are looking for 85$.

Solar stocks have been on a roar as we have noted numerous times earlier.

No doubt this has been a difficult market to trade. But our picks MOS, YGE, WNR and such have

kept us in the game and very well so. We are looking for one more push up into the 1140$ area by mid Jan or earlier.

Dec 2

9:40 a.m. Took some more profits in MOS.