Ok, we wrapped up this week of Davos meeting. Conclusion: the market is still in a bull mode, as US recovery is gaining steam and the FED is providing a floor with hopes of QE3.
Euro is prevented from collapse with QE3 coming in March. Market is expecting a deal in the Eurozone by Sunday. This deal is the result of last November Eurozone solution. They bought 3 months of time to reach this coming deal. If it falls through for some reason, assumptions made last Nov is no longer valid.
The next big rally in coming in China when it opens its market on 30 Jan. I am flying off from Zurich to Beijing now, I have taken some profits on my US trades and now have invested them in China via HK H shares.
I see an extended wave 3 in SPX, which brings us to 1360, from the current 1313 level. This is to support next week FACEBOOK IPO and the rally in China, Taiwan.
As China blocks blogger, I may not be able to post. However I am updating my subscribers through newsletter. You may sign up as a follower of this blog and I exercise my discretion if I want to include you in my newsletter.
Happy trader, trader safely.
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