12/8-12/12 Week Review and Next Week Forecast

TA session is now confirmed.
Sunday 12/14 Morning 9:00am to 11:00am Pacific Time
Paltalk room: Stock4Profit Chat No password
More like a Q&A session on 5 min and 15 min trading system, basic pattern, and free chat.

Mkt had a wild week, we had 2 MAJOR bad news (1) Madoff (2) GM. Mkt showed us how it can go one extrame to another.
Now The (2) GM will hanging around until Obama gets into office and remember GM BK is NOT priced in in current and 2009 SPX EPS. My opinion is simple, GM will NOT survive in 2009.
The first news (1) Madoff is a serious issue, and so far we do not know where those 50 billion came from, the take is IF those money are from current coorperations, then once these news start to spread, there will be sell off on those companies' stocks and so does the mkt. So we do need pay attention to the news front next week.

In general mkt view: Remember we are in a burtle BEAR MKT and now we are in an counter trend rally/consolidation. We position ourselves as quick longs for momo stocks and take profit as soon as you like it. Day trade the counter trend is still the best. SWING traders, short term, mid-term should more focus on the short side and wait for the good safe point to enter the mkt.

I know many of you are in favor on OPTIONs. OPTIONs involve high risk, espectially for those thin traded options and double ETF options. If I get into options, I'd prefer SPY, DIA, and DJIA 30 names only, because the vol and bid/ask are easy for me to get in and out with triggers. REMEMBER trade option is NOT a GAMBLING.

DJIA 30 names daily charts here, many of them look tired:

AA AXP BA BAC C CAT CVX DD DIS GE
GM HD HPQ IBM INTC JNJ JPM KFT KO MCD
MMM MRK MSFT PFE PG T UTX VZ WMT XOM

Chart glance for indices, USO, $VIX, $CPC, $BKX, UUP
Focus on the relationship and impact from USO, $VIX, $CPC, UUP, BKX to Indices

Dynamic chart XLF Daily, Looking for 50% fib retrace around 12.6 to end this bounce
Dynamic chart XHB Daily, Possible go 13.5-14 area before come down
With Commodities hold the ground, watch these two sectors, once they complete their bounce and start heading down, so will the general mkt indices.

Dynamic chart SRS Daily, I will be in it if XHB sees 13.5-14 and SPX near 950
Dynamic chart URE Daily, Within triangle, same as XHB, TA looks bullish
Dynamic chart SKF Daily, I will be in it if XLF sees 12.6 area and heading down

Overview of NEXT Week
Dynamic chart SPX Daily
Interesting hammer close on Friday with support held above 840. If we do not have bad news or surprises, the momemtum can carry it towards 50ma (900-909). After that SPX under the light of GS ER, could retest 865 support area (Friday's support) before OE run starts

Dynamic chart 15 min SPX
Channel within Triangle formation, It will break one way or another next week

Dynamic 60 min SPY
Channel or triangle, continuation or break out, the decision will be make next week

THE BIG Picture:
SPX-Monthly chart: Brutle Bear mkt, no sign of recover confirmation yet
SPX-Weekly chart: Cycle counts the super degree of Bear Mkt

Fortune put up 10 BEST Stocks for 2009, believe or not
MO NLY DELL DVN DO FLR JNJ MHS PFE POT
Among those 10, I still like FLR and POT both are commodity momo stocks and it travels between 9ema to upper BB. FLR already stands above 50ema, so 50ema would be a nice stop. POT is looking for 50ema if it can gain enough strength.
MO looks interesting, It had consolidated here for 9 days. other TA indicators started turning which can possible make a upside break run to a measured target.