Thursday, December 29, 2005

Late Day Selloff All But Ends The Possibility Of A Santa Claus Rally

The late selloff helped stocks close near the low of the days with volume coming in lower across the board and well below the 50 day volume average. The blame on this late day selloff was placed on the yield curve as it inverted again today. The inversion was followed by the broad selling which you can't blame market players for doing. The best economic predictor of a recession is an inverted yield curve. However, folks need to remember that not all inversions lead to a recession. 1994 is the most recent example I can think of and I was not even trading then. LOL.

Besides that late day excitement there was a whole lot of nothing going on. There wasn't even a santa claus rally or window dressing to talk about. With that in mind, I might as well take a long weekend vacation. Therefore there will be no commentary this weekend as it is pointless analyzing the trading of the last day of the year.

Happy New Year everyone. I hope 2005 was as good to you as it was to me and here is wishing you a great 2006. Have a great weekend.

Aloha from the most beautiful place on Earth and, once again, HAPPY NEW YEAR!!!!!!

New Swing Longs: ALKS NAK

Longs Outperforming Market: MFLX-138% CERS-121% SUPX-68% MNG-65% TSCM-53% GOL-52% AUY-47% TFR-40% LCRD-37% NXG-27% SPWR-26% DIET KNXA ERS VSEC MDCC FFIV IDSY ONT MNST DDD

New Swing Shorts: NTRI BMHC ELOS

Shorts Outperforming Market: PBCT

Stocks On Radar Screen: IRBT VIMC

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