After 11 months, market is @ starting point ?

IF you are feeling frustrated & unsure about your strategy, you are not alone.

After 11 months of trading, indices are flat for the year.

We all know why indices are in a very narrow trading range, too many issues in world economies & solutions are very slow in coming. We are news driven on a daily basis, which defies fundamentals & technicals.

Since we are flat for the year, we have built a very strong base. We are entering in a positive news flow environment. Finally, we have a firm resolution on Greece & Italy. Italy is to be commended for dealing in a timely manner without painful theatrics.

SO..what is the next worry ?

It is USA, where politicians will be on TV in dealing with super-committee challenges. Are we going to be held hostage till the last second of deadline?......IF history is any guide, then it will be so. As usual CNBC will spend enormous YAP time to deal with all the non-implications of outcome.

BUT..there is a contra-trend to offset US political gamesmanship, it is Q4...which has a history of positive Nov, Dec & Jan.......there is a very good chance that next 13 weeks may surprise everyone with the intensity of UP move.

S&P 500 closed @ 1263.85

Next move is to 200 DMA which is @ 1272.27

After that we should take out 1292.66......which is a "breakout"

After breakout, we will be in uncharted territory looking towards 1356.48

RSI closed @ 56.04...we should easily go towards 68 area....

Based on Q4 POSITIVE MOMENTUM, it is important to position in better ideas for next 13 weeks.

I have a strong CONVICTION that many stocks will make all time highs by end of January 2012.

Please pay attention to potential technical BREAKOUTS, not be involved with BREAKDOWNS.......

Again what you like, may not be among the best ideas.....

Please review RSI, 50 DMA, 200 DMA & seasonal strength of your stocks, there is such a thing as SEASONALITY..check HIRSCH ALMANAC for those ideas......

Do NOT hesitate to SWITCH to what is working or may work given a very strong market.

Good luck with your diligent homework, we are looking @ last 13 weeks to make our portfolio shine !

BLOG does NOT give buy or sell.

Saleem