Being enjoying the holiday season and was waiting to add a new post at the new year. Since my last post a month ago about overbought risk, the major indexes of Nasdaq, Nasdaq 100, SP500, and the Dow either consolidated or pullback back a little. Though the Dow Composite and Russell 2000 indexes did better by moving higher instead and that's usually a bullish indication of the current momentum higher. Toward the last trading days of the 2012, the market was at or near oversold level and I was waiting for the SP500 to fall below 1390 before I initiate a +75% buy position and short term buy signal. That didn't happen as the lowest it got was 1398 on Monday and proceeded to rocketed higher on anticipation of the deal against the 'Fiscal Cliff' and rocket higher again on Wednesday on the deal being completed. Instead I got in late the last two days on less than 50% positions. The last two days was a rare occasion of having 90% of stocks closing higher for two straight days. Such occasions in the past has generally being bullish for the stock market 6 months afterward. The Dow Composite and the Russell 2000 already made 52 weeks high which is very positive. So will see if the stock market can maintain a bullish momentum occur again for the coming 6 months. For the time being, the stock market will be at overbought level tomorrow and if it can weather a light pullback in the coming days then that should be a positive indication for higher prices for the 1st half of the new year.
