DJIM #51 2009
Monday, December 21, 2009 at 05:58AM Heading into Friday’s trading day, our opening lines surrounded the idea of ignoring the hourly, day fluctuations as we head into the last 9 trading days of the year. On Friday, the market was all over the place, the ES was up 4-5 pts early premarket than was red or flat by the open. This whipsaw pattern continued throughout the day. If you tensed up or panicked as the market penetrated the 1097-1099 by a few pts before noon, you missed a ramp up to 1102 by close. Point is, this is not the time of the year to throw away stock, but to be long into year-end. If you see strength all day in NASD (on the heels of RIMM ORCL earnings,) you don’t fret over DOW 40 or SPX being down and think the sell off will continue from the previous 2 days. Add , banks-brokers having a decent morning and further downside is limited as we had 2 of the most important sec’s performing quite well.
Only 2 ½ trading days ahead this week, some window dressing Q end may begin with some recent beat up mega stocks AAPL AMZN getting a bid . We think it’s a stock pickers market now and will be in 2010 as lower volatility and the search away from zero returns brings money into risk assets (equities). Recently, it’s been more of an ETF type trade, SPY etc with individual stocks not moving in tandem. Due to this we will continue to seek set up trades, like CAGC recently that popped 10pts or so and than CLW , alerted a few days ago moved from $54 (9ema) on Thursday to 59+ by Friday’s close. Also trading some AONE, (GMCR OVTI ) off recent low possible turns).
Most importantly, we wish our readers and your families a very Merry Xmas and a great holiday week ahead. We recently posted our schedule for the week ahead, we will still try to provide a few bullet points on the markets during the week.