Sunday, 3 February 2008

The 2008 Super Bowl Indicator tells us the markets may have a positive year

Well, according to the most recent Super Bowl Indicator, we are to have a high probability of markets finishing higher in 2008. With NY Giants upsetting NE Patriots during the last minutes of the thrilling 17-14 game on February 3, 2008, all Bulls around the world for surely felt somewhat relieved and supercharged, with revived hopes for another "up" year.

On a more serious note, while the probability of such outcome remains pretty slim, it is still not impossible, as a possibility of the markets turning around closer to the end of this year cannot be ruled out yet. More realistically, we will probably see very short-term effects of this win, with a strong opening on Monday being very likely, as excited Bull traders and investors will return to their offices pumped up by the bullish results of Sunday game.

So far, as of the midnight before Monday, index futures and the upside opening performance of the Asian markets suggest a strong Monday-morning opening of the North American markets as well, which may or may not develop later during the day into a massive Bullish assault on the resistance-area bastions. It is going to be an interesting battle between Bears and Bulls over the first 2-3 days of this week. Let's have fun watching it.

The Bulls will almost surely lose by the end of this week or later during the month, but who cares! It is a great market game, and its players are well aware of the gaming rules. The Bears have been impatiently waiting for thir momentum of dominance for several years. They finally got their say and will generally run the party at least for the next several months, while the Bulls will have to scavenge on short-lived Bear rallies like the one we are currently observing.

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