What a year 2019 has been. December has been a solid month for the market, and it would not be a surprise if this continues. The risk of a pullback grows as we push forward in time, but it should not be a surprise. Overall, the trend is higher, and a short-term correction will not derail the prevailing trend. Of course, things will change and if leading stocks crater and distribution piles up the story changes. Until then we can only trade the market that is in front of us. Many will try and fight the trend but will ultimately lose. Close out 2019 strong and look forward to another great year next year.
The NASDAQ 100 continues to be the leading index. Money managers and traders a like continue to flock to the group. Regardless of the reason why it proves to stick with the leading groups. Now, this does not mean there have not been opportunities elsewhere. It just means the large institutional money has been flowing into the NASDAQ 100 more so than anywhere else. Big money flow is something to keep an eye on when it comes to leading stocks. Let’s also not forget there is big money in Money Market accounts. Cash on the sidelines. Where will it flow in 2020?
Commentary is going to be short today. Reviewing trades that went well and not so well is a solid practice. All the greats make sure they learn something from their mistakes. Good luck with your trading in the final two trading days of the year.
