Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
Quiet trade ahead of New Year
Thu, Dec 31 2009, 20:19 GMT
Unfortunately, the markets have been lacking in excitement as of late. I do my best not to bore readers with irrelevant information and I hate that this newsletter has been so repetitive in recent weeks but I don’t control the news or the markets, I just call it how I see it.
As we have been noting for several weeks, going on months, we had been looking for a yearend rally to take us to 1130 or a bit higher in the S&P. Now that we are here, the best advice that I can give is sell on rallies but don’t get overly bearish. While the markets seem like they are running out of steam, and we think that a sizable correction could be seen in the coming weeks…the volume is light and the markets are bigger than we are.
We are still comfortable with the short NASDAQ recommendation made in this newsletter a few days ago but warn that there is some potential of a last gasp rally to 1895ish. Similarly, such a move is possible in the S&P putting the index near 1140. Once the rollover takes place, our initial downside target in the S&P will be 1110 and 1835 in the NASDAQ.
Our friends on the CME floor have called the markets pretty well this year. This is what they have to say going into year end.
http://www.youtube.com/watch?v=mVjnztTZUeo
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track ‘n Trade, Gecko software.
**Seasonality is already be factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.