Worries about global markets, and particularly with Europe, appear to be forgotten as the NYSE Composite drives above resistance levels in the first trading day of 2012.

The New York Stock Exchange Composite has been in a broad consolidation since October. At the same time, the 'safe haven' US dollar has shown renewed strength. In response to today's bullish movement, trading on the PowerShares US Dollar ETF (UUP) has shown the first signs of decline as traders shift their assets out of defensive positions and into growth. This is positive reinforcement for higher stock market levels.

Bottom line: A bear market bottom is now being formed. There is still a low expected in mid-January, but this trough should be very shallow. Global markets are anticipated to advance in Q1 as a new bull market takes shape.

Investment approach: Investors should be ready to move back into the markets over the next two weeks. Good price levels are available in banks, energy and base metals securities. Emerging market ETFs should also offer attractive prices in mid-January.

The TS model Growth Portfolios will be buying in the middle of the month. A full list of securities will be sent out to subscribers over the next week.

By Donald W. Dony, FCSI, MFTA
www.technicalspeculator.com

COPYRIGHT © 2011 Donald W. Dony
Donald W. Dony, FCSI, MFTA has been in the investment profession for over 20 years, first as a stock broker in the mid 1980's and then as the principal of D. W. Dony and Associates Inc., a financial consulting firm to present. He is the editor and publisher of the Technical Speculator, a monthly international investment newsletter, which specializes in major world equity markets, currencies, bonds and interest rates as well as the precious metals markets.

Donald is also an instructor for the Canadian Securities Institute (CSI). He is often called upon to design technical analysis training programs and to provide teaching to industry professionals on technical analysis at many of Canada's leading brokerage firms. He is a respected specialist in the area of intermarket and cycle analysis and a frequent speaker at investment conferences.

Mr. Dony is a member of the Canadian Society of Technical Analysts (CSTA) and the International Federation of Technical Analysts (IFTA).

Donald W. Dony Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.