Profunds index and sector trading

[CaribbeanJim]

My Profunds System is Now Long

Nas100 (uopix) 30%
International (unpix) 20%
Europe (uepix) 20%
Emerging Markets (uupix) 20%
Nikkei (ujpix) 10%

Moved completely out of cash into these diversified long positions (most of which are leveraged). I was hoping to get a little pullback today, but the smart money wouldn't let it happen.

Sentiment cratered this week which is contrarian bullish. I see a double bottom on the SP500 and what looks like a significant double bottom on the Nikkei. Daily MACDs on three major markets have crossed upwards (Nikkei, Dax, Nasdaq and SP500). There is a chance that we get one more capitulation retest down but I can almost say without a doubt that we will not close below 2540 on the Nasdaq between now and the end of the year. Our markets are at the mid-BB so the worst that I see could happen is a shakeout down to the lower BB. I really don't anticipate us getting much of any pullback until SP500 hits 1500. I think the dips will be bought as all short-term and intermediate-term technicals have bottomed along with sentiment.

How far do we go from here? ... I don't know, but a retest of the October highs should be an easy target. The 2800 level looks easily attainable on the Nasdaq and should occur rapidly (over a few days next week). The SP500 will be slower going as there is a THICK wall of resistance 1500-1550.