Trader’s once again ignored bad economic data as new home sales plunged 11.3%. Initially, the market did see selling as traders reacted to the terrible housing data. Slowly but surely stocks began to creep higher and eventually hitting into new high territory. Small caps again out-shined all gaining more than 1% on the day while the Dow Jones Industrial Average lagging. Another positive day for the market as volume remains low due to Christmas.
Thursday’s session will be shortened for Christmas Eve and more than likely will not produce much for us to gain any insight. For now, we remain in an uptrend with the NASDAQ, S&P 500, and Small Cap indexes at new 52 week highs. The obvious flaw is volume and the lack thereof. For now, it is a concern but not a large one. It appears this market is going to be on par with the December ’03 and January ’04 market rally. Consequently, that rally began on very low volume and enjoyed gains for much of the month. There are no guarantees in this market, but the similarities to the 2003 market are pretty darn close.
We aren’t over-complicating this market and will not try to look for enlightenment when there isn’t any. Pre-holiday trade is nothing to write home to mom about nor is it anything we should get excited about. We continue to take it stock by stock and let price-volume action guide our trading.
From the Big Wave Trading family to your have a Merry Christmas and an enjoyable holiday season!
Thanks Bro,
For your insight on the market, I have made some money watching the market
like you and the Lord has Blessed me with favor. I love you man, if you surf
and do stocks your are cool with me and one of the tribe. God Bless you
and keep up the good work and some day I hope to join you in the Islands
where I can be myself and just surf and be one with the ocean ect. Just let
me finish up with my wife and kids, first. lol. God Bless you, Gary,