Nasdaq jumped 7.59% last week.......

All indices jumped 7%+ last week.

S&P 500 had the biggest jump since March of 09.

In case you have lost count, March 09 was 32 months ago......why am i pointing this duration to you, because this kind of rally is very RARE. In order to take full advantage of this you have to monitor sentiment, technical & Fundamentals of economic scene.

Many pundits including Jimmy the Cramer has been telling everyone to sell all along or stay only in high dividend stocks...which encouraged many traders to stay out of this market or remained underweight. We all know what is happening since sell sell sell......many are NOT participating or barely in, in this major move UP.

This only proves one thing, market is way smarter than "salaried pundits"

What happens next is being debated & opinionated to the hilt on CNBC, general conclusion is that Europeans will cause markets to tank again. These are the same experts who got last week wrong?

We all have to understand why the markets went UP worldwide ?

It went UP because, many Central Banks eased up the banking liquidity which was being choked up due to EU debt issues.

For few weeks now, there has been a concerted effort to deal with EU debt situation. Complex issues do not get resolved in one shot, it is always incremental step towards resolution.

I am expecting EU to get closer to dealing with their crisis, by Friday close we will know, that another step has been taken.

I expect markets to resume rallying, once their is enough signal from France,Germany & others that they are on side.

There is lot more reason to be optimistic about markets  based on the following FACTS :

-Consumers are alive & well & spending MORE than EVER. Black Friday & Cyber Monday is FACT.

-US economy is turning UP.

- Chinese are stimulating by lowering discount requirement by .5%

-EU is dealing with many debt issues, Greece & Italy already dealt with.

Based on the above, market has given its nod, by turning UP.

SO, it is up to you to stay ahead of the curve or follow bumbling pundits who do not know which way is UP.

YES, i am more than OPTIMISTIC for a strong year end rally.

Yes, Hedge Funds can take this market LOWER on no reason or MANUFACTURED reasons through their proxies on CNBC, but we are heading HIGHER.

On a personal note, I had the biggest gain last week ever. Quite humbled by this reality.

-Last week, my gain in equity through stocks was 39.90%

-Last week my gain in equity through Canadian $ was 52.16%

-Combined gain in equity last week was 92.06%.........NEVER imagined that i will see numbers like that in a week.

-My portfolio increased by 104.03% last week.......

IF i can attribute this to anything, it will be, to my dogged pursuit of my OWN take on economy, politics, stocks & markets.

Good luck with your OWN homework & your OWN take of markets.

BLOG does NOT give buy or sell.

Saleem