Monday, December 20, 2010

Everything went up today...

...dollar, gold silver and the stock market. Volume on SPY was low today and is most likely going to remain low for the rest of the week. Santa's rally is already here, but bulls may gain a few more points this week on a weak volume. SPX tasted 1250 for the first time in two years. It remains to be seen if this level is going to give bulls headaches or not in January when market will come back in force, with a decent volume.

Market is pretty quiet lately, not too much volatility, but it's still moving up. Twelve out of the last 14 trading days were bullish and no wonder DMI looks so bullish both on daily and weekly charts. SMA120 is now around 1225, the November high, this level being the most obvious support level for SPX. 

Otherwise, plenty of opportunities in individual stocks but they are risky and you need to have a good stomach if you decide to play them. Here are two suggestions of stocks with a nice momentum. I am going to post more tomorrow morning. Let me know what are your favorite stocks.

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