Market trend is UP......

Since end of August,market has established a strong "bull mode".

Many participant of this market have failed to recognize that bull market TAPE is different from bear market TAPE......

IF you are well diversified in many strong sectors,there is no need to lose sleep over minor corrections....

We just witnessed 4.4% correction in S&P 500 which lasted 7 trading days......

RSI in S&P 500 went from 80 to 48 in a hurry,currently 55.62.

Strong support in a bull market is established around 50 DMA.......we came down to 1173.00 while 50 DMA is 1170.59......

Gold which is in a "mother of all rally" touched 50 DMA also since August...50 DMA 130.53 we went down to 129.83 four days ago......currently @ 132.20......all bull market gives you an entry point if you closely watch it & act quickly......

Gold stocks for the most part have NOT benefited from record gold prices, as many were expecting gold to pull back.

Many gold stocks are trading near 3 years ago prices when gold was less than $1,000.....I expect gold stocks to move stronger than gold prices,as their profitability is much higher than anytime in their history.Lower Natural Gas prices also helps gold mining companies.

Silver also came near 50 DMA of 23.12,currently 26.74, silver TAPE is much stronger than gold.SLV is a good ETF to track silver moves.

The point i am trying to make that :

-It is a major bull market

-Pullbacks to ascending 50DMA is the best buying opportunity.

-Sector rotation is in vogue.....RVBD,FFIV stronger while AAPL,BIDU,AMZN weaker... means later should move NOW......

-Laggards like Gold stocks should move sharply higher....

-Casino stocks also pulled back near 50 DMA & is now on its way to making new highs.....

Bottom line is, IF you see 10% correction in strong stocks ..it is prudent move to buy quickly.

This is a 3.5 day week,closed on Thursday & closing @ 1PM on Friday......history tells us that we should be down this week......BUT "bull market" thesis tells me that we should move UP to challenge HIGHS......

I expect this bull market to take us into new "all time highs in Dow & S&P 500 quickly" & Nasdaq with some struggle as Nasdaq went sky high in Dot.Com euphoria...5000++ will be here but much later than S&P 500 & Dow new all time highs.....

SO, get to know your stocks & get out quickly IF they change direction.We only have to be right 51% of the time to make money.IF you are batting HIGHER than 51% then you are way ahead of the game.

Good luck in your sector & stock selection,you can beat "expectations" by being ahead of the pack.

BLOG does NOT give buy or sell.

Saleem