I apologize to those who think we are going down next week; and you know what, statistically speaking, there is a probability that the bear camp could be right. However, based on the price pattern (daily and weekly SPY charts below), I’m more leaning on the probability that we will continue to go up.
Below is the daily SPY Chart:
From the look of the daily chart, you can see that price action is going up, up and away! So, with the upward momentum you can see visually, I’ve to say the probability of the price action continuing in the same direction is very high.
Now, take a look at the weekly SPY chart below:
Did you see how the last week bar took out the Wall 3 resistance and went away from it? From a breakout standpoint, the price action momentum to the upside has only just begun! Again, giving the visual weekly chart, I’ve to say the price action for next week has a better probability of going up.
Giving the two positive visual outlooks of SPY price action, I’m currently 98% invested with a majority of the stocks concentrated on the energy sector (uranium and natural gas):
Uranium: USU; CCJ; URA DNN (31% of portfolio)
Natural Gas: GLOG; CHK (16% of portfolio)
Biotech: AMRN, SZYM (20% of portfolio)
Technology: LRAD, SSYS, EMAN (31% of portfolio)
The above portfolio is dynamic and is subjected to change based on price action of the stocks.
I also like to congratulate the folks at ibankcoin who are doing quite well since the beginning of the year. The Fly, of course, is always ahead of the crowd here; but I must give Rhino a standing applause for his spectacular turnaround. The combination of his instinct and daring execution on ISGR was quite an eye opener. “Wow!” was my first impression.
Meanwhile, I’m ahead with a decent 5.2% YTD so far. There are still 11 months so let’s play our cards right so we all make spectacular return for 2013!