More melt-up today on Wall Street, as stocks closed with very mild gains and trading was light. Financials led the way with a 1% gain, while small caps slightly lagged the overall market. Volume was light and will continue to be light the rest of this week going into Christmas. It will likely remain light next week as well.
Overall, the indices are overbought on the RSI(2) and this melt up has left the markets extended, but it is Christmas and without any sellers coming into play, it is likely this melt-up continues a bit longer. I don't know that I would be buying anything up here but as I've been saying, if you're already long, just sit back, show some patience, and hopefully keep making some money. This type of melt-up on low volume can lead to quick bouts of selling, but I don't know that we'll see that the next two days. More than likely, the next two days will be like today - slow and choppy with a slight positive bias.
I have been slacking recently with scanning for individual plays simply because my accounts have been in a state of flux. I was finally able to get the paperwork done today, however, to transfer my main account from awful Scottrade to ThinkorSwim, so hopefully I will get back in the swing of things now. Of the brokers I read, TOS seemed to get the best reviews. From a commissions perspective, they are a bit higher, but I am usually not trading in lots of over 500 or so shares at a time, so their pricing system will in some cases be less for me that Scottrade. It should take a week or two for the transfer to go through, but I hope to be trading again by the new year. I still am working on getting my IRAs transferred over as well.
That's it for today - classic holiday trading right now and if you're not in the market already, there is nothing saying you can't just take the next few days off. I think we'll see some snoozers like today, but if you are invested, then it pays to keep riding them out. Good luck Thursday.