Monday, December 21, 2009

Monday Morning Thoughts - 12/21/09

Sorry for the lack of a weekend post, but with my sister-in-law's wedding, it was quite busy here the past few days.

Based on futures, it looks like the market is going to try and break out here AGAIN, at least on the Nasdaq(watch 2220). The S&P looks like it will open slightly below its resistance area around 1116. The dollar is quite overbought and looks ripe for a pullback - if we get it, perhaps that will eb the catalyst to get a breakout going. The next two calendar weeks are typically bullish, although my guess is that volume will be low today and the rest of this week (year actually) as traders shut things down for the holiday. That means we either go nowhere or we have a lot of volatility and whipsaw type action. I hope we don't see that, but it is certainly a possibility.

I don't know that I will be trading heavily this week, but if I make trades, I will keep my eyes on commodities, specifically gold, which is at a five month trendline, quite oversold, and should bounce if the dollar pulls back. I have yet to go through my scans but will do so now to see what else is out there.

Chart from Telechart, Courtesy of Worden Brothers, Inc.

I continue to see a general loss of momentum in most of these China stocks (CAAS, RINO, etc.) but they could always bounce and run in a low-volume environment, so keep them on your list, even if it's just for day trades. GPRE, CGA, GSI, SWI, SFLY, and SDTH are others I will be watching today.

Good luck today, and I did want to let my readers know that Telechart is running their holiday special - four months free on a twelve-month subscription to both their Telechart and Stock Finder products, and as always, they offer a 30-day free trial. I've been a Telechart users going into my third year, and I honestly don't know what I did without it - it saves me so much time and helps me find the stocks that are moving in any market. Now playing them - well, it can't help me with that - that's my problem....

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