I did scanning and looking charts for some time to see what to expect to start a new year.
I ended for 5 different conclusions as follows:
1. From SPX500 I like MetroPCS (chart attatched as last one)
2. Sony is still bullish for me, to correct at least.
(posted it originally as x-mas long but I would expect to see more while Logitech which was another one didn´t answer so much and I will skip it for now).
3. Alcoa (Aluminium) is potentially allready trading the lows or going to do so very soon.
4. At the short side AZO might be such a candidates and IBM might become one later but not yet.
5. Most weird I noticed are however gold, silver and palladium stocks. Many charts attached.
Gold itself also hit and reached my ABC correction target as 1500 while 1450 would be even more ideal and can happen yet later or not, but it appears to have fully different kind of life compared for underlying stocks.
This group certainly has been landing, in some cases for year or even more and they are looking more interesting in here as spot gold itself.
I would expect bounce in this area.
Overall, I think picture is complex in the stockmarket, it is difficult to get any signficant edge for proxyindex products itself and this particulary concerns US markets.
DAX had huge rally day today (+3%) which was good for my Daimler & Continetal & BMW.
Perhaps cracked euro start to boost our export indursty which will be end result anyway lower it trends, at least some day. I allways said that stockmarket reaction when euro goes down are wrong because every time euro gets lower it is better for our macropicture and not vica-verca. There are CEO´s in Europe who says that every time euro takes one penny down, they do make one additional million. There are a lot things which won´t make sense in the market how correlation works or how market reacts for it. Everytime euro goes down, euromarkets should rally and not vica verca.
One another is Oil price, one could argue that every time it goes up it also takes one million off, increasing energy prices are not good for anyone. As the other side of the story market just reads it as inverse that there will be less demand for it if economy is easing and it is bad signal for entire stockmarket if it cracks down.
2 different kind of true´s for every story.
Overall I am pretty neutral but I do not have shorts either.
I assume light & very selective long only would be right describtion but I don´t like SPX picture itself much. It does not suggest any signficant directional edge for me well enough and I would not expect this to change anytime soon either to become any easy song.
Btw. I covered this universum most expensive retail stock as AMZN way too early and also closed today that UPM long from Europe which reached my conservative target for it but I was likely just early bird with it.
A few Gold Stocks & Honda and potentially PCS is what I am thinking as new positions + potentially Alcoa particulary if it takes some small more downside which I doubt it doesn´t do now since it is also "metal" stocks, not much.
Nokia I have allready from Europe.