Monday, December 21, 2009

State of the Market - 12/21/09

I don't have a whole lot new to say from my earlier post this morning - the market had a nice day today but it was a little weird from where I sat. The Nasdaq clearly broke to new highs for the year which is great but the S&P did not follow suit and continues to be stuck under that resistance around 1115-1120. That is typically negative and I expected more from the S&P with the market breaking past heavy resistance, at least in the case of the Nasdaq.

I also saw very few stocks that I was watching move higher and have nice breakouts today, which is also a bit weird. I was ready to put a few positions on this morning near the open but I simply didn't see anything that interested me. The only two stocks that did anything that I was watching were SWI and HGSI and volume was not super strong on either. The Chinese momo stocks moved a lot but went basically nowhere if that makes sense.

I was stopped out of my small SDS position today at $34.94 but just barely - not really a big deal to me. I am not planning on shorting anything here as I feel the more likely move this week is up. The fact that the dollar continues to be strong and the market is holding up and in some cases moving higher is very impressive - hard to believe as well. If the dollar pulls back sometime, I still think the market could move a bit faster to the upside than we've seen recently. We'll just have to see. I will be looking for potential plays on the long side this week but as of today, there just weren't many out there for my taste. Good luck Tuesday.

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