Good morning. Happy Monday. Hope you had a nice long weekend.
The market has rallied 5 consecutive days and 10 of the last 12. Not bad. All the indexes are at new highs – a couple have broken out and would be considered in new moves although volume last week was light.
This is another holiday-shortened week, so volume again will be light. Then we’ll see what the January Effect brings.
My long bias has kept us on the right side of the market. We’ve had many very good set ups perform great recently, and although the tendency is for a little give back following Christmas, I see no reason to change my bias right now. As stated, all the indexes are at new highs and about 80% of the market groups are near or at new highs also. Plus the breadth indicators support the strength. There really is no reason to randomly guess when a top will be put in place. The trend is up, so let’s continue playing the market is that direction.
Several overseas markets were closed today. Of the ones which opened, most are up. Futures here in the States are up a small amount.
Don’t over-analyze things here. The trend is up, so that’s the direction the market should be played. There are many reasons the market never should have rallied as much as it has, and that’s why I prefer reading the charts and trading what IS happening to trading what is supposed to happen. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers