The US markets are closed on Thursday due to Thanksgiving. Tomorrow, Friday, US trading will show small volumes, so beware the volatility there.
The last 4 trading sessions of major stock markets were positive. Seems that after the negative talk about the fiscal cliff, the financing of Greece and the Middle East tensions, markets have been in holiday mood.
I dont want to speak after the fact, but it was almost clear that markets would not go down non-stop. as some “gurus” predicted. Some kind of technical bounce would come and we said that last Friday asking if “1343 was the short-term low for the S&P”. S&P is about 50 points higher now (+4%). Apple was even stronger. Not bad…
In the coming days my best guess is that markets may correct a bit lower to make a higher low but then the way is open for an attack of 1400 for the S&P (13000 for the Dow).
So, given the 2-day shortened trading, I would recommend you not to open any new big positions. If you are long, you can trim your positions after the last 4-day rally. If you are still short, the medium term trend is still down, but dont get too aggressive either.