In Friday's newsletter I showed where the NASDAQ Composite has risen to a well-formed downtrend line. Volume had fallen off, although I acknowledged the holiday week may be the reason. I certainly didn't expect Friday to make much difference. After all, everyone would probably be sleeping late after lining up at Best Buy at 12 am for all those special offers.
But lo and behold, somebody stayed home Friday and bought some stock instead. There wasn't a seller to be found, as the market gapped up on open and went straight up. Of course, volume was low, due to the half-day of holiday trading.
But if you think about it, you can probably guess who was the real star of the show – Consumer Discretionary stocks. Whatever indication you like to see, it is there. A breakout from a well-defined Bull Flag. A strong close above its 50-day moving average. Stochastics, MACD, On Balance Volume hitting an 8-month high. Friday's close of 47.16 is only 1.7% below the all-time high XLY set in early October.
This morning's Marketwatch.com has the headline “Cyber Monday optimism: Sales could reach $1.5B”. It makes sense to keep a close watch on consumer
stocks right now. The big money, institutions, typically buy into consumer stocks this time of year, expecting to play a rise into Q4 earnings announcements in January. And right now, everyone is looking for a glimmer of hope on the economy. The eternal, hoped-for savior of the economy, the
consumer, may finally be appearing on the horizon. All we need to do is watch the stocks most likely to benefit.
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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