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December 14 2013 – Weekend Market Comment

December 14 2013 – I am in Cancun Mexico and there are lots of folks at the bar talking to me and I am writing my blog, what dedication.  So this will be short. Besides are you really going to get much of an intelligent comment (or good spelling) after my fourth cerveza. Last week I said that a one-day bounce is not a trend and well now you know why, it was only a one day bounce. However expect the market to drop to the lows of the first few day of Nov. S & P 1750 and bounce up for a Christmas rally. The whole thing should dovetail nicely with the up coming Fed meeting, I am expecting no change and the markets will love it. Of course we wait to be sure that bounce happens.

If your trading account allows a buy on stop order, (Bank of Montreal does so most brokers should) you might want to follow the market down with a buy on stop set at three times daily ATR. Then when the turn comes your in. What to buy is still most of the things I mentioned last week.

Everything looks weaker, here is the VIX:

and the NYSE high low is rolling over, often a sign of bigger trouble:

and the 50 day overbought says "could be time to buy soon":

From the files of "I told you so" Gold continues to sell off and DUST marches upward:

OK ladies 1 2 3 say "Traders Rock" . . .