January indicator not looking good ......

Trading world is fixated on first five days of trading in January which foretells how the market will do in January & for the whole year......

First thing first.....January indicator is off to a bad start, S&P 500 has been down 2 days out of 2 trading days ....a poor batting record from any angle.....

I am not hopeful that not only 5 trading days may be negative overall but next 10 trading days are also not looking good.....

I do not see much of a catalyst in near term.......

We have to wait until week of 20th January to see some spark from GOOG earnings report.....

Next 10 trading days may be down overall, then it will depend on how good earnings are & their guidance.

Individual investors are retreating in a hurry, bulls are 43.1% vs 55.7% while bears are jumping to 29.3% vs 18.5%........this is a positive indicator as it confirms lack of  "euphoria".......BUT look @ the next stat ...

Advisers or professional Money Managers are salivating in this TAPE ...they are roaring bulls @ 61.6% & bearish only @ 15.2%.....a uber euphoric number..negative for near term action.......

Bottom line is that we have a long way to go to curb enthusiasm...

Traders have to recognize that this is 2014 & TAPE character is not defined yet......

It will be wise to take a "different approach to trading or investing"

Laggards have changed into desirable picks....recognize this & you will be fine even in this corrective phase.

Every year markets are not the same, some of us have learnt this the hard way......

I am expecting tough market in the near term...

Keep an eye on RSI in S&P 500 which is "real market of 500 leading basket of stocks"

RSI needs to come down from current 60.53 to 40 area to complete this phase of pullback...

This pullback has "only just begun"

Lying low for few weeks is not a bad idea, wait for TAPE to find its support.

BLOG does NOT give buy or sell.

Saleem