Sunday, January 20, 2013

Bull Market at a Key Point

 Expecting a stall at exactly 1482.00 to 1484  that could show sufficient stopping power to terminate the rally. When we get there, we’ll want to tighten up with an impulse leg-based stop-loss , Shooting for a 1470.25 long term target.

Even for someone who expects the economy to worsen in 2013, as I do, there is no evading the bullish implications of the facts shown in the technical picture. Most immediately, the logic of it suggests we’ll see new all-time highs near 1553.50 in the weeks ahead.

So what happens now if the futures simply blow past our target? That’s always a possibility, and it would have undeniably bullish implications going forward. But even then, we wouldn’t expect the E-Mini S&P to much exceed 1548.25, a longer-term objective.

Much as I’d like to say we can go back to being bearish now that we’ve at least considered the bullish case, we are in fact obliged by the evidence to be bullish. If there’s any hope I can hold out to permabears, it is that a high at 1553.50 — representing a headline breakout, by 34 points, above the 2007 top — could in theory set up one of the most enticing bull traps in stock-market history.

Open Position : Long @ 1456.50  with + 45.50 pts booked on multiple contracts.Shooting for 1494.50 long term target

Jaguar Trader

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