As the New Year approaches prices in equities are likely to remain flat to modestly higher as many fund managers, institutional investors and portfolio managers will be reluctant to sell before 2017. That said, we anticipate profit taking during January 2017 as traders take advantage of an overbought market.

 

Over the long-term, the ratio of stocks vs bonds generally is in favor of stocks over bonds. However investors who are concerned with a shorter time frame should be cautious as this ratio is approaching a previous resistance top from 2013  where it will likely find formidable resistance.

 

Noteworthy is the widely followed relative strength indicator in relation to the (14 week RSI) has become stretched as it exceeded 70 for the first time in 3 years and is already beginning to pullback or stall as it did back then when this ratio became over heated.

 

The fact that the formation above appears to be a bull flag may likely turn out to be the beginning of a mean reversion considering the high volume that has accompanied this pattern formation. The transportation sector also has neared a resistance zone from last year as investors began a rotation out of bond proxies and may likely digest gains here as the ratio needs to pull back.

 

Investors should be wary of Chinese stocks at this time as Chinese Bond yields are surging on the back of continued depreciation of the Chinese Yuan which will place downward pressure on Chinese related stocks, investors already invested in Chinese stocks should be hedging against the risk of a depreciating currency.

 

Investors in the DT Group have enjoyed another record breaking week as we locked gains in some of the following names:

 

• Micron (MU)                                                +92%  Gain                                 (Timestamp alert at 9:47 AM - 16 Dec 2016)

• Advanced Micro Devices (AMD            +135%  Gain                                (Timestamp alert at 9:55 AM - 12 Dec 2016)

• VanEck Vectors Russia ETF (RSX)         +575%  Gain                                (Timestamp alert at 10:00 AM - 12 Dec 2016)

• Bank of America (BAC)                             +91%  Gain                                (Timestamp alert at11:07 AM 14 Dec 2016)

• Apple, Inc (AAPL)                                     +206%  Gain                                (Timestamp alert at 9:42 AM - 15 Dec 2016)

• Financial Select Sector (XLF)             +1,183%  Gain                               (Timestamp alert at 2:11 PM - 8 Dec 2016)

• SPDR S&P 500 ETF (SPY)                            +12%  Gain                               (Timestamp alert at 1:21 PM - 16 Dec 2016)

• S&P 500 large Cap Index (SPX)                +82%  Gain                               (Timestamp alert at 9:36 AM - 13 Dec 2016)

• iShares Russell 2000 ETF (IWM)              +85%  Gain                               (Timestamp alert at 11:31 AM - 8 Dec 2016)

• Facebook, Inc (FB)                                      +67%  Gain                               (Timestamp  alert at 9:51 AM - 9 Dec 2016)

• Home Depot, Inc (HD)                               +38%  Gain                               (Timestamp alert at 9:51 AM - 9 Dec 2016)

• Amazon, Inc (AMZN)                                  +15%  Gain                               (Timestamp alert at 9:50 AM - 13 Dec 2016)

• Netflix, Inc (NFLX)                                      +27%  Gain                               (Timestamp alert at 10:37 AM - 13 Dec 2016)

• Tesla Motors, Inc (TSLA)                            +50% Gain                               (Timestamp alert at10:47 AM - 16 Dec 2016)

• Apple, Inc (AAPL)                                       +148% Gain                              (Timestamp alert at 11:17 AM - 12 Dec 2016)

 

   The #time stamped & #verified swing trades & day trades w/stock options above were sent to members in real time both entries & exits

 

   Happy Holidays!