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.