Although market appears to be improving day by day, it is climbing in anticipation of a deal before end of 2012. We still have three more weeks to go, however if a deal is NOT done by Christmas, expect swift decline as everyone would like to avoid higher taxes on capital gains. It would be wise to remain cautious... Based on below BPNYA chart, we do not have a BUY signal yet. However, if market continues to show improvements we may get a BUY trigger. What should we do? Ideally, we would follow the signal but since we know the current Fiscal Cliff situation, we might want to wait till a deal is done. Market managed to break MA(50) resistance and continue its journey upwards, Can it continue in this direction without a deal!!! Weekly NYSE chart looks encouraging as it has managed to bounce from the earlier dip. Ideally, such a pattern is bullish and upward bias could be established, also MACD is very close to cross-over suggesting further upward action. Conflicting information, which one to follow?
The key issue we are facing at present is Fiscal Cliff -
What does it mean for our Investments?
Stay alert and be cautious... Comments are closed.
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