Even with a shortened week, the market had ones of its best weeks ever. The Dow finished the week up 9.7%, the NASDAQ up 10.9%, and the S&P 500 up 12%.
Volume was low for the week though, decreasing each day. This makes the rally suspect. It will be important to see how the market reacts on Monday.
There were some good picks that moved well last week. Here are a couple of them:
EBS has moved nicely since breaking out last week.
HMSY was one a day traded, but the volume was an indication that buyers were pouring in.
The VIX now sits just under the 50-Day MA and a trendline after forming a double top in November. This will be important to watch for a clue to market direction.
Many of the inverse ETF’s are now sitting at or slightly under trendlines, like SDS here. Will they bounce off these trendlines and move higher?
I am expecting a pullback here. Although I saw several nice looking charts for long entries, I plan to be extra careful with these. A trigger will not necessarily mean an entry. Volume will be important, as well as market direction. Hopefully the market will pull back slightly, and then begin another leg higher. But in this current market, pullbacks have been brutal, and I don’t want to be caught long in one of those.
Good luck and good trading!
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