2012 starts with a bang with investors and traders getting into their bull suits.
Major US Indexes gap up higher over 2% and world markets around the globe are rallying.
We got some positive macro data today for the US with the ISM Manufactoring Index showing a stronger than expected increase in December.
Also Europe has been "quiet" and bond yields in most PIIGS countries are dropping while US Treasury yields are rising, which is a positive development.
I mantain a bullish bias but in order to get a new longer term uptrend we need to start to observe that not only US Indexes are breaking out over major resistance levels.
Emerging markets, which have the highest GDP growth rates and increase in consumption, need to start participating and leading the market rally.
For the moment, they are bottoming out but still look like they are in a downtrend. Copper which is a proxy for emerging market growth is hitting its downtrend today once again.
It would be also be nice to see the Nasdaq Composite and the ETF PDP (An index of leading growth and momentum stocks) leading the US indexes rally instead of blue chips and dividend stocks. This would show more bullish conviction from traders and investors.
Let's look at the charts:
I did this interview with my friend Mike Swanson before the open and talk about the charts and ideas that I mention in this update.
Watch it here: http://www.wallstreetwindow.com/node/4699