MY CRYSTAL BALL IS SAYING: “BE LONG ON NASDAQ AND RUSSELL”

After a volatile day Thursday DJIA closed modestly higher, the other US indices plunged. It was again an ugly day for the Nasdaq for small cap index Russell2000 and for the S&P500. During the US trading session the DJIA reached its intraday high at 16.622. It is a new record high close from April 30 is 16,580. At session highs, the DJIA jumped 100 points and topped its previous record to close levels. The DJIA managed to stay in positive territory by the end of the day too.

• S&P500 — down -0.1%, to 1,875
• DJIA — up +0.2%, to 16,550
• Nasdaq— down -0.4%, to 4,051
• Russell 2000 — down -1%, to 1,097

Previous records:

Closings:

• DJIA: 16,580 (4/30/14)
• SPX: 1,890 (4/2/14)
• COMP: 4,357 (3/5/14) (14-yr high)

Intraday highs:

• DJIA: 16,631 (4/4/14)
• SPX: 1,897 (4/4/14)
• COMP: 4,371 (3/6/14) (14-yr high)

The Russell 2000 was at -1.00%. The index of small stocks closed 11 points, 1%, lower at 1,097. It has been made already -10% correction so far YTD, which is a good level to buy the dip opportunities. The weakness in Nasdaq and Russell2000 have come to an end. It is a good opportunity not buying longer the high priced big, or middle cap stocks, but buying the cheap Nasdaq and small cap companies.

DO YOU WANT TO EARN OVER 30% PER YEAR?

Invest into our fully regulated Swiss Managed Account Fund: http://www.bfmassets.com/managed-accounts

The BFM Assets Team.