What a year for the market and today’s session added a cherry on top. Given how last year began with a deal on the fiscal cliff today’s session was relatively quiet in comparison. Consumer confidence was up more than expected gave the bulls ammunition to push this thing higher. Volume was assisted by end of the month rebalancing, but volume truly hasn’t mattered all that much for all of 2013. The strong price action continues to occur and we aren’t about to fight it with exception of our hedges. We are certainly looking forward to 2014 and if 2013 was indication we are looking at a great new year!
Back to today’s session as we got good news from the consumer, but will it turn into sales at the register? We’ll find out as we get retail sales over the course of January. We still have a quite a bit of bullishness in terms of sentiment. The other is the number is slightly concerning is the number of stocks above their 20 day moving average. 78% of stocks are currently above their respective 20 day moving average and while it is not a perfect indicator it does lead one to believe this market is due for at least a pause. Have a plan! It is important to know where the exits are in case we do get a pullback know whether or not you need to exit your stocks. Just do not guess or sell in a panic. Stick with the plan.
As we stroll into the New Year make sure you make it a great year. Set a few goals and make a plan to execute. In addition, get a Big Wave Trading subscription! Aloha and we look forward to a great 2014!
