The markets staged a reversal on Friday. Nothing spectacular, it may not go far. But the S&P 500 set a low about two hours into the day and then bounced off that on strong volume, closing near the high for the day.
Many big-name stocks similarly formed minor reversals. But there are plenty of other stocks that continued pulling back.
The historical track record of the Dow, the S&P, and the Russell 2000 over the next 6 to 7 weeks shows gains in 80 to 90% of the recent years.
This will be an interesting week. As I finalize this early Monday morning, the headlines are reading “Europe stocks rally as U.S. debt talks see progress”. If the ‘fiscal cliff’ talks don’t collapse, we may see a rally into the end of the year. There are many big-name stocks offering higher probability setups right now for stock and option trades. But this is still no time to take risks. Smaller, more conservative trades, is the best approach for now.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, click here: www.markettamer.com/seasonal-forecaster
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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