The market is trying, it really is. It wants to believe, believe that the economy is improving, if ever so slightly, that the ‘fiscal cliff' will turn out to be just a temporary speed bump, that there is a Santa Claus.
The Russell 2000, representing smaller companies, is brandishing the most optimism. Russell is standing outside, staring up into the sky. Wait – are
those bells he hears? Was that something up in the sky?
“If it were not for hopes, the heart would break.” – Thomas Fuller
Fortunately, Russell doesn't work for Mr. Scrooge. He works for Goldman Sachs. He's hoping Santa brings a year-end bonus check like 1999 or 2007. Ah, those were the times. All that time spent at Wharton, and then Princeton. Russell feels he deserves the best. Even falling off some ‘fiscal cliff' won't affect
him – he doesn't know why it's such a big deal. He's got the world by the tail. Just a little more gain for the year and that bonus should be real nice.
The Russell 2000 is displaying his enthusiasm. 8 up days over the last 9, 4 opening gaps, 4 days with volume well-above average, a solid break above a
Goldman Sach's star trader (actually, they are all the same, it's just that GS has to make each one feel he's the star) will do everything he can to make this a good Christmas. What could possibly go wrong?
But since I don't work for ‘Government Sachs' and don't have any of that Princeton orange hanging on my wall, I am turning cautious. Bigger-name stocks seem to be pausing, not following through on the recent rebound. Taking profits, lighter positions, and bearish hedges may be in order.
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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