Outlook for the Week Ahead - December 26, 2010

Hi, traders - I hope everyone had a great Christmas holiday and were able to spend some quality time with family and friends.   Having two young kids makes Christmas very fun so I enjoyed Friday into Saturday a good bit.  I know that I may buy stock in Fisher-Price soon after having my house now full of Imaginext toy sets and the Imaginext Big Foot toy (I can't tell you how many times we had to watch that video before Christmas morning).   Good stuff however...my boys are loving it (and their dad thinks it's pretty cool too.)

I hate to sound repetitive, but I think we are in for a boring week this week as the holiday trading environment will remain, with low volume and likely little action.   Supposedly Friday is a full trading day, but I can't imagine that trading will be heavy.   When you also factor in the "blizzard" that is coming to the East coast, I think there is a very good chance we don't see much happening this week.   We are extended after last week's holiday meltup, but as the year concludes, I would not be surprised to see further meltup as hedge funds and mutual funds try to tack a few more percentage points onto their yearly totals.   I don't know how much technicals matter in a low-volume environment like this.  The beginning of January should be interesting, as this run-up may set us up for a sharp fall, but for now, continue to focus on longs until the market gives us a clear signal that it is not the right thing to do. 

Instead of the video, I am just going to share some setups to watch here from the long side this week.   My money is in the process of being transferred from Scottrade to ThinkorSwim, so I won't be trading, but if you plan on being active this week, I would stick to short timeframes and be nimble.   Hopefully, some of these setups help you out.  
Good luck this week as the year comes to an end.

AGM

 IMAX

 JKS

 LIWA

 MKSI

 PCLN

 RITT

 SHZ

Charts from Telechart, Courtesy of Worden Brothers, Inc.