A Late Day Push Sends Stocks into the Green

The last Market Commentary prior to the New Year, Happy New Year.  We wish all of you a prosperous and joyful new year.  A quick look back at 2009, we saw the market appear to crater into oblivion and a historic rally.  All in one year and we were certainly on top of the market.  This market is resembling the 2003 recovery and January 2010 might be rhyming with 2003.  We wish you well in the New Year!

Another light volume session for the market as pre-holiday trading continued.  A surprise out of the Chicago PMI figures as the number showed a surprise jump.  It was the highest reading for the economic number since 2006.  Manufacturing is highly important to our economic recovery and a good sign that we may have growth in the manufacturing sector.  Consequently, the dollar jumped on the news soaring past the 78.00 level.  Stocks sold off on the news, but caught an underlying bid.  The market made a run for positive territory but was met with selling near mid-day and again at the close.  However, at the close a strong move by the NASDAQ lifted the tide finishing the day in the green.  Another indication this uptrend remains strong and intact.

This market is not displaying any signs of distribution or stalling.  Today, we saw the NASDAQ rise on volume greater than Tuesday’s session.  While this is not huge accumulation it is a positive sign there was an appetite for accumulating shares.  On the whole, this week is a holiday week and we really shouldn’t put too much stock into it.  We aren’t ignoring it entirely by any means, but light volume sessions can push around stocks and will look abnormal.

Once again, the VIX is showing weakness signaling a positive sign for stocks.  Much of the rally in 2003 through 2004 we witnessed the VIX drop as stocks climbed.  We are certainly getting similar action as the VIX is confirming our view on this uptrend.  How much further do we have is a question that can not be answered unless you are guessing!  No one knows the future, so we play the cards we are dealt and not make any opinion on what MIGHT happen.

Our uptrend remains and we continue to find long ideas that are working very well.  2009 was a tough year for many as was 2008.  Many investors in 2008 remained long and had their accounts wiped out.  But, at Big Wave Trading we were able to be in cash and short some very nice stocks.  In 2009, we did not fight the trend and went with it as we will always do.  If you haven’t already, sign up for with our Holiday Special and take control of your financial future.  It only takes 30mins a day to put yourself in a better situation financially.  Do not hesitate for another moment.

We wish you all a happy and prosperous new year!

From the Big Wave Trading family