Bet on a year-end rally now!

It's great to be back. Unfortunately it turned out that I could not get to my blogs while I was away in the past 2 weeks. Retrospectively what a dramatic 2 weeks it was! Two days (Nov 15) before I left, I predicted that both stock markets and oil would decline severely in the near term. Almost like I could manipulate the markets, it turned out exactly as what I had expected. See below that both stocks and oil dropped over 5% immediately within a week (blue for oil & yellow for S&P500).

I also said that it would be a good opportunity to buy stocks if they indeed declined, since I expected that the stock market would be doing well in the next few months. While the blog pages were blocked so that I could not log in, I could still get into my trading account with no problems. When people were panic and scared in the week of Nov 21, I was happy and bought quite a lot of mining companies and good companies like Coca Cola (KO) etc. I hope you did so as well. If you wanted to be a successful investor, you simply can not follow what a general trader or investor do. Otherwise you are doomed to fail! With respect to oil, I got out ERY as well with a good short-term profit. Although I had expected oil to plummet more, I took a quick profit when the overall market sentiment was too bearish, which often indicates a quick turnaround. I was happy that I was not too greedy to hang on with ERY.

I expect we are now on a safe way for a year-end rally. Technically and seasonally it is just a good time for stocks, regardless how dire the overall economic and debt situations are worldwide. The market is not always rational. If it wants to go up, it will regardless. I think this is such a time to safely bet for a uptrend, at least towards the year-end.