S&P500 to Challenge 1576 Next Week?

Last week I mentioned the market was likely to see new highs and that prediction came true. Despite the issues with Italy and the budget, the market barely blinked and this week's market prices proves we are in a very bullish market. New all time highs are in for the Dow and there is a good chance the S&P500 will likely do the same as soon as next week. But I think it depends if the 5th wave of the Int 3rd wave extends, so we need to see if the market is doing a possible 5 wave count on this wave as marked on the chart. If the count is right, we should see a gap up or a strong bullish wave early next week. And as I said yesterday, there are quite a few people calling tops here but personally I am not seeing any signs of it just yet. Specially a significant long term top since this rally (like most of the rallies for the past 2 years) have been met with lots of skepticism and many calling for an outright crash. So maybe when all these doomsters throw in the towel and we start seeing stories of how people are day trading for a living, that is when we will see a major top. I think a good example is Harry Dent who is currently predicting a crash to Dow 3000 this year. This same guy came out with a book called "Roaring 2000's" in the late 90's predicting Dow 40,000 (yes 40,000!) by 2009.. so his timing might be just a perfect predictor of what's to come .. lol. How in the world someone making outlandish claims gets any airtime is truly beyond me and apparently he makes a living selling his ideas to people too.

Anyway, I added 15% to my long term portfolio this week spread out through several sessions and I am in the green there (Daily MACD made their crosses today). So I am fully invested and ready for the moon.. I just need to a nice Int W3 rally in Chinese stocks and I'll be semi-retired so these next couple of months will be very interesting/crucial for me.

Have a Great Weekend!

Main S&P 500 Trends

Short Term Trend = Bullish

Medium Term Trend = Bullish

Long Term Trend = Bullish

Long Term Portfolio

• 100% Long in Red Chips traded in HSI (Mainland China stocks traded in Hong Kong) initiated September 2012. Only position trading 30-40% of portfolio for cost improvement. - Sold 10% on 12/27/12, Sold 10% 01/22/2013 - Bought back 5% 02/27/13 - bought 5% 03/01/13 - bought 5% 03/04/13 - bought 5% 03/06/13

Short Term Margin Trading Strategy 

• Bought 1500 SPXU@ 30.98 on 02/27/13 - Sold 1500 SPXU @ 31.05 on 03/01/13 = +0.07
• Bought 2000 VXX @22.38 on 02/12/13 - Stopped out @22.38 on 02/14. Bought back @22.05 on 02/15/13 - Sold all 2800 VXX on 02/25/13 @ 24.30 = +2.05
• Bought 1000 VXX @ $25.78 as of 01/16/2013, Bought 1000 VXX @23.68 on 01/22/2013 - Sold @22.70 to position trade on 01/25/2013. Took loss $2.00
• Bought 1000 VXX @ $25.92 as of 01/15/2013 - Closed @25.96 on 01/15/2013 . = +0.04
• Bought 30 AAPL @ $509.50 as of 12/14/2012 on margin - Closed @514.50 on 12/17/2012. = +5.00
• Bought 1000 XIV @18.62 as of 12/13/2012 on margin - Closed @18.70 on 12/14/2012. = +0.08
• Bought 1000 XIV @18.80 as of 12/05/2012 on margin - Closed @18.88 on 12/07/2012. = +0.08
• Bought 1000 XIV @18.41 as of 12/04/2012 on margin - Closed @18.63 on 12/05/2012. = +0.22
• Bought 500 VXX @29.23 on 12/03/2012 - Closed @30.12 on 12/03/2012. = +0.89
• Bought 500 VXX @30.77 on 11/23/2012 - Closed @29..68 on 11/27/2012. = -1.09
• Bought 500 VXX @31.54 on 11/20/2012 - Stopped out @31.11 on 11/21/2012. = -0.43
• Closed position 500 @ 18.26 on 11/20/2012. Sold 500 @ 17.79, raised stop to break even on the other 500 as of 11/19/2012. Bought 1000 XIV @15.98 as of 11/15/2012 on margin - position trade cost improvement 4 cents, so net cost $15.94 as of 11/16/2012 - Profit = $2.05 
• Bought 1000 XIV @16.88 as of 11/14/2012 on margin - Stopped out @ 16.66 on 11/14/2012. = -0.22
• Bought 1000 XIV @15.67 as of 11/08/2012 on margin - sold 1000 XIV @ 16.25 on 11/12/2012 = +0.58
• Margin positions in Gold initiated 11/06/2012.

Net Profit since 11/08/2012 on open and closed short term positions = $2,625*