2012 a turbulent year for Global Stock Market: VXX, TVIX

Wall Street riding on a false hope get ready for a crash.

If you think you have seen it all in 2011, then get ready for even bigger roller coaster ride of stock market in 2012 till first quarter of 2013. Volatility is likely to remain high throughout 2012 and mostly above 20 in most part of the year. 2011 was a year of failed promises from Politician across the continents right from US debt debate, to US Job bill or so called Super Committee. Even EFSF was set up for above 1 trillion dollar but the fund didn't even cross 500 Billion euro. Eur/Usd is right now below 1.30 and Italian bond yield above 7. Both are in the danger zone, suggest how much work is done in Europe to save Euro.

US stock market was up in last two week because of the positive data from US market, " Yet, many traders are expecting QE3". If the economy is so good then why the trader are expecting QE3 ?
Printing free money is never going to solve economy problem. The economy needs real job and real growth for prosperity. So far ECB has put about 3.55 trillion Euro, while Fed has put about 2.1 trillion dollar in last 2 year to save the banks. If this amount had been used in building some infrastructure and increasing the rates, economy of US and Europe would had been great shape. 

The first three month will be dominated by ECB/EU summit/ FED FOMC meeting, Rating agency downgrades, US bank stress result, US debt ceiling and US GDP. 

Keep VXX or TVIX in your portfolio. The market isn't safe for the long term investor. "Cash is the king" If you can save your cash and wait for the right opportunity you can make good fortune. Overall I am very bearish for Jan/Feb and especially March. 

For bearish stock: Buy TVIX, VXX, TZA, ERY, FAZ

For bullish stock: Buy XIV, TNA, ERX, FAS. Also you can this list, to buy the stock at the right price.

http://www.freefdawatchlist.com/2011/12/buy-right-stock-at-right-price.html

Economic data from Jan 2nd to Jan 5th to watch out

Monday, January 2

Markets in the U.S. will be remaining closed for a national holiday.

Tuesday, January 3

In the euro zone, official data is to be published on German unemployment change, a key signal of overall economic health. 

U.S. is to publish data on manufacturing PMI. The Federal Reserve is also to release the minutes of its latest policy-setting meeting. 

Wednesday, January 4

The euro zone is to produce official data on French consumer spending, which accounts for the majority of overall economic activity. Later Wednesday, a preliminary report is to be released on consumer price inflation in the single currency bloc. 

Meanwhile, the U.S. is to publish government data on factory orders, a leading indicator of production.

Thursday, January 5

In the euro zone, official data is to be published on German retail sales, the primary gauge of consumer spending. 

Elsewhere, the U.S. is to publish industry data on non-farm employment change, a key indicator of consumer spending, followed by weekly government data on unemployment claims. The country is also to release a report by the Institute for Supply Management on non-manufacturing PMI as well as data on crude oil stockpiles. 

Friday, January 6

The euro zone is to publish official data on retail sales, a primary gauge of consumer spending, as well as reports on the unemployment rate in the single currency bloc and German factory orders, a leading indicator of production. 

The U.S. is to round up the week with a government reports on non-farm employment change and the unemployment rate. The country is also to release government data on average hourly earnings, a key indicator of consumer inflation.