Short term at over bought levels (and price resistances). UBS expects another few percentage points on the basis of the xmas rally before the cyclical bear resumes. In spite of the mildly bullish call UBS declares selling into strength the better move at this point – which, in my opinion, is the correct move due to the european mess that shows no signs of a swift resolution. Here below the report.

Weekly06-12

I also want to point to an excellent, non technical, comment from Janjuah. Imo, he is spot on the money in this interview. Large caps will do just fine and are safer than bank deposits. If you have the skills to hedge do so otherwise ride out the volatility in these large caps. Do not go over 20% leverage in this coming phase. imo. The volatility could be immense.

http://www.youtube.com/watch?v=JGtMJMLnBS4

All the best

Rich

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