Monday, December 24, 2012

The Economy Will Improve (Economist)

Here is a 2013 Forecast from The Economist and the CMEgroup.

The new year will begin with heavy clouds suspended over
much of the global economy, but with the prospect of
brightening later in 2013. 

Uncertainty over the “fiscal cliff” will weigh on U.S. growth in
the short-term, but assuming this hurdle is safely negotiated,
confidence should improve next year. By mid-2013 stimulus
should also more visibly be boosting China’s economy, and
even the euro zone should be growing again. 

The Economist Intelligence Unit’s latest global forecast—
largely unchanged from last month—is therefore for a
limited pick-up in Gross Domestic Product growth next
year, with improvements in key economies setting the
stage for a stronger recovery in 2014

Read more here:

Happy holidays!

Tuesday, December 4, 2012

Stock Systems: Re-Iterate Long Trading Signals 12/4/12

We have not needed to update our stock trading signals because the signals have mainly remained the same. Our last signal update was on October 11, when the S&P stood at 1438.   The S&P closed yesterday at 1410.  Our stock market signals remain:

  • Long-term models remain bullish.
  • Intermediate-term (Overbought / oversold) models remain moderately bullish.
  • Short-term trends continue to dictate our stock positions.  

Since October, the stock market has been fairly volatile, dropping from the 1460 level down to 1350, before  rebounding to the 1410 level.  
  • Long-term investors should look to add to positions on stock declines.  
  • (E-mini) S&P traders should look to be long, based on our long-term (bullish) and intermediate-term (moderately bullish) signals.