S&P 500 moved UP 5.34% in 3 days....what next ?

Last 10 trading days have been the most confusing for many traders, first we went down, down & down for 7 trading days then in last 3 trading days we recouped everything we lost in previous 7 trading days.

A move UP of 105.29 points or 5.34% in S&P 500 says a lot about the nature of this TAPE, we have done this kind of action after every selling.

Bulls are 49.5% & bears are 14.9%

It is hard to analyze this TAPE with bull / bear ratio as they have not gone extreme in a long time, bears are stuck in the mud for 14 area for a very long time.....some historical stat or indicator has not made any sense in this recovery since 2009.......

Only technical indicator which has worked in short term movement has been my ever reliable RSI. It is highly recommended to understand and follow RSI for traders.

I have a strong feeling based on RSI of 58.91, that we may heading to series of new highs in all indices......

IF that is going to happen, then it is wise to stay with your long position and increase exposure.

TAPE has been difficult, but IF you have been stubborn like a Taurus which is me, then long exposure has worked out for the most part. One thing i always know, that market is extremely difficult or impossible to predict.

It is extremely important to give conviction a big focus. Why buy something IF you are not going to show conviction. Peter Lynch taught all of us to buy what you know very well and stick with it.

Fed is supporting this market in a big way as US economy still has lag in employment.

India could be the biggest beneficiary of weak oil prices as their foreign exchange reserve will grow as imported oil cost way less, this will free more money for boosting economy as Indian consumer is benefiting with lower petrol prices. Indian stock market should boom.

China is heading towards 7% GDP growth which is lowest in a long time, thus many challenges ahead for growth in their stocks & market.

Europe may be on the verge of positive economic picture after five years of contraction.

US by far, is the best idea in profit growth in many sectors.

2015 is going to be another strong year in US market.

Look @ your strategy for 2015, critique your mistakes of 2014 and do not repeat bad strategy or thesis, otherwise, you are going to lag markets in 2015.

Good luck for 2015, as we have only 4 trading days left in 2014.

BLOG does NOT give buy or sell.

Saleem