Year-End Rally?

Many indicators are at or close to the April highs. Since the indicators are inverse, they are telling us that a statistical chance of a strong, high-volume advance is low, but the chance of a mild correction is high. Thus, short-term caution is advised with day traders taking positions on rallies up to intraday resistance lines. But, as I said before, the long-term and intermediate-term technical readings remain bullish.

If the market can extend the rally till the end of December, I don't think a correction can be avoid in January

 Nasdaq closed at 2637.54, S&P closed at 1240.4 on Friday. They are coming very close to our target 2650 and 1250. Market may not drop before holiday, however, now is the time to lighten your long holding. If the market can extend the rally till the end of December, I don't think a correction can be avoid in January.

There is a possibility of major indices and the Dow non-confirmation, coupled with very poor sentiment numbers and overbought internal indicators, I remain a very cautious bull. The market is quite sensitive to news, and the internal numbers show a definite lack of commitment, while the Nasdaq is the strongest, indicating that the public is chasing lower quality stocks. That, too, is nasty.

The sovereign debt problem in Europe is a crisis that is not going away, and will not end well, so it will be ongoing headline news that will affect the markets periodically.

All in all, tighten your seat belt and get ready for a roller coaster ride in January.

Market may top off at Nasdaq 2650 and S&P500 1250

The stock market this week so far is very strong and bullish. Investors were encouraged by a preliminary agreement between the White House and Republican leaders on a tax package that would extend the current Bush cuts for two years. A reduction in payroll taxes for a year, an extension of jobless benefits, and a reinstatement of the estate tax at 35% are also part of the plan.

Stock markets are going back up testing their recent highs, just as we indicated last week. Some markets have gone into new 52 week highs already.

So we have to keep our eye on the charts, and when the longer up trend breaks down, then I have to be ready to exit the market. Upside potential is probably limited by the overhead trendline that has been in play all year long. So if we reach Nasdaq 2650 or S&P500 1250 this week, that will be a very good selling price. So I am ready to sell near Nasdaq 2650, or S&P500 1250.

Enjoy you bull run and lighten your investment

The market rallied again on last Friday. The bulls finally crushed the S&P 500 resistance line at 1210 yesterday, with a close that was 11 points higher than that important number and just 4 points off of November’s high. So the only remaining barrier for the indices is their November highs, which is 11506 for the Dow, 2593 for the Nasdaq and 1127 for S&P500.

You should cash in some good profit since my bullish alert last Sunday. Although December is the most bullish month of the year. I suggest you lighten your long position at this level.

B Vitamins Protect Aging Brains

New research suggests B vitamins may help lower homocysteine levels, possibly offsetting further decline in people with mild thinking (cognitive) impairment and preventing progression to more serious forms of dementia.

The brain loses some of its mass with age, even in otherwise healthy people. This progressive “brain atrophy” is more pronounced in people with mild cognitive impairment that doesn’t interfere with normal functioning, but is characterized by some problems related to memory, thinking, language, and judgment. Brain atrophy is much accelerated in people with advanced dementia, like that seen in Alzheimer’s disease.

The homocysteine connection
Higher blood levels of homocysteine, a toxic byproduct of an amino acid, is one risk factor for brain atrophy and Alzheimer’s disease. B vitamins are needed to break down homocysteine, so it’s been suggested that if they help lower homocysteine levels, they might also be able to slow the rate of brain atrophy.

The new study, which was published in the journal, PLoS ONE, involved 168 people over 70 years old with mild cognitive impairment. The participants were given 0.8 mg folic acid, 0.5 mg vitamin B12, and 20 mg vitamin B6 or placebo every day for 24 months. At the beginning of the study and after two years, MRIs of their brains assessed changes in brain mass.

Blood levels of homocysteine dropped by 23% in the people taking B vitamins, and the rate of brain atrophy per year was almost 30% lower in the B-vitamin group than in the placebo group at the end of the study.

“It is tempting to suggest that this finding is consistent with the view that raised homocysteine is a direct cause of atrophy,” the authors commented. “However, it does not exclude that homocysteine is only a marker for low-normal levels of the vitamins, which are themselves the causal factors.”

Tips for top brain function

Try these tips to keep your brain going strong.

• Use it or lose it. Studies have shown that staying mentally active is vital to keeping brain synapses healthy. Try learning a new instrument or craft, and branch out with different kinds of brain-teaser games.

• Move your body. Physical exercise is just as important as the mental kind when it comes to preserving healthy brain function. Aim for at least 30 minutes on most days of the week. Intense exercise is best, but you’ll still reap benefits just from walking.

• Eat your way there. Blueberries, wild salmon, and nuts and seeds all provide essential nutrients that have been shown to help preserve healthy brain function. Keeping your heart healthy with foods like whole grains, legumes, olive oil, and avocados has the added benefit of improving circulation to the brain.

• Take a multivitamin. Many comprehensive multivitamins contain B vitamins in the dosages used in the new study. Always talk to your doctor before starting a new medication or supplement.