by: Price Headley
December 28, 2009
There really is a Santa Claus, as far as investors are concerned. Against the odds, stocks moved higher last week by about 2% with the help of decent existing-homes sales and lowered continuing claims. Never mind the fact that those two items were the only encouraging news.
Even more stunning…. volume was actually pretty strong, considering it was a shortened week. It forces the question of whether or not there were that many suckers last week, or if the bulls are actually growing legs again. We contend it’s still a mix of both, and largely depends on your timeframe.
Our Traders Edge outlook on stocks -- a bigger picture view -- is still bullish, identifying the potential that was unleashed last week. That service is effectively recommending staying long, and buying on dips. On the flipside, this outlook – shorter term in nature -- warns of such a dip brewing up within the next few days. (Between the two, timing the market’s ebb and flow can be done with laser-like precision.)
So what happens now that the market busted through its ceiling with a little volume? Does this offer an omen of more upside, or does this just set up a slightly-higher starting point for a pullback? We’ll stick with the latter as far as the near-term is concerned.
[snip]
Thought you would want to read this
http://thefightofyourlife.blogspot.com/2009/12/yrc-trucking-and-why-you-need-to-be.html