EXPERTS’ CRYSTAL BALLS ARE CLOUDY

Most of them forecasted a big fall, but finally Mr. Market has delivered a nice rally in December. Experts stated during the month that the market will crash, new correction will happen, but they are wrong. They convinced many investors with this negative sentiment staying without positions, so they lost again an opportunity to invest in this rising market.

Around Xmas days there were no volume, but the markets are gained further nicely. We saw new highs in the major indices S&P 500, DJIA, Nasdaq, Russell 2000. This is a very strong confirmation of the bull market is alive and well for all those doubters. Nasdaq closed at highest level since March 2000. The Dow index has gained for seven consecutive trading days, and enjoyed its biggest seven-day point gain since 2008. The Nasdaq has been up for eight of the last ten weeks, while the S&P 500 has gained for nine of the past ten weeks. This is a typical end of year rally.

In technical terms the Dow made a clear breakout last week at 17.960 and stayed in the untouched territory, so any forecast without indication of resistance levels is just guessing. What we are expecting is the index is going strengthen further in the following 5-10 days.

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The BFM Assets Team.