Since the QE program has ended and the rate will be coming up in April, Q1 2015 is going to be nervous [line December 2014].
-The crude oil price will drop to 45$ stay there for 3 months and then go up very fast to 80$.
-Defensive sectors like Utility, Healthcare and Consume Staples are expected to perform well. Small beta is still a good strategy.
-China production will go down further, causing minor damage to Indian stocks [both may well be bullish for short term]
-Russia will fight aggressively against speculators, whiles its economy will shrink further [daytrading opportunities]
-We will see further slow raise in long term bonds, such as EDV and international bonds like ITLT
-There will be very active volatility play (XIV/VXX)
-Shorting oil (SCO), gas (DGAZ) and gold (DGLD) may be interesting if timed properly
-Emerging markets will further implode (EDZ play)
-Long cybersecurity (HACK or equivalent) and airospace (ITA or equivalent)
Indecisive but risky
-Biotechnology bubble is not going to birst yet
-Financial organization exposure to energy may show first signs of cracking
-REIT status: people are still afraid, especially since rates raising
-Europe may go up due to QE, euro will probably go down
-Yen will go down due to QE, but Nikkei MAY go up. Good for carry trade…