Gold momentum is improving and we are looking for the initial target of 1265 which is slightly above the 40wk average.

We have client meetings all day and wanted to send out this quick note on the S&P given the overnight weakness.

We are long gold and would be buyers here with a potential $20 upside to our MFU-2 target of 1265. For managers running long/short, consider going long February gold and short March copper.

With healthcare continuing to score very well in our model, we went through a large universe of U.S. stocks which score well and have very good absolute and relative trends in place.

Following up on our note of November 21, we would be closing the short-term buy on the S&P Emini right here.

WUBA is turning down at Ellipse point.  Target 50.75 with stop at 60.50.

Following up on our November 23 note of long CMG and pair trade of long CMG and Short SBUX, we would be adding to the trade.

Not much has changed for the U.S. markets when viewed on an intermediate-term basis. We did highlight a short-term buy in the S&P last week based on the daily timeframe and that buy remains in effect. Momentum for the Nasdaq Composite remains very weak and we would continue to use any strength to lighten up on Tech. Defensive areas such as Utilities are holding up very well and we had U.S.REITs as viewed by the IYR trigger a buy this week. We are working on a complete sector review for later this week.

The driver for the idea is CMG that turned up at the Ellipse turning point indicator and showing improvement in its money flow. For those that run long only, we would be a buyer of CMG, and for those running long/short, we like the pair trade of long CMG and short SBUX.

For an aggressive trader, we would be long the Emini with a stop just below the trendline at 2620.

We are looking for declines from this year's highs to be in the -18% to -20% range, yes, more to go.

We were traveling last week and wanted to send out a follow up of our November 5 short ideas on NVDA and MU.

The Long & Short Of It - Short VLO and PSX

Today we are highlighting the following pair trade: Long Lockheed Martin (LMT) and Short Boeing (BA). The main driver for the ideas is the strong multi-factor model score of BA vs. LMT as well as the small base pattern of BA.

The U.S. indices had a good bounce last week, but not enough to change the overall outlook which remains cautious. The S&P 500 had a 5% rally off the MFU-4 target based on the daily timeframe, but all it has really done is to rally into a zone of resistance. The intermediate-term momentum measures remain weak. We continue to see more weakness in Growth relative to Value.