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MARKET WRAP UP 12/01/10
Stocks got off to a feel-good start to the new month, as the S&P 500 closed up 1.64% to 1206. The morning move higher was never aggressively faded, and actually strengthened slightly as the day progressed. Breadth was very strong, and volume was solid as well. Moreover, the S&P broke above what had been a tight consolidation pattern over the past few weeks, and recaptured the 20 day moving average.
With the small cap and transportation stocks in excellent technical shape, the bulls have earned the right to be in control of their own destiny. I would not be surprised to see tomorrow be a digestion day. However, I’ll be keeping a close eye to see how well the 1200 level on the S&P can act as support.
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Chess would you normally initiate a position today or wait till tomorrow for the “digestion”?
Depends on the individual setup. DECK, e.g., is a name you’d have to wait at least a day or two to let it digest.
feels like the aug/sep transition, back when everyone thought the world would end. we were two weeks in before someone said “shit, we’re going up, not down.”
hey chess thanks as always… it “recaptured” the 20 day on a overnight low volume ramp + squeezed shorts to cover at the open yet again. wash. rinse. repeat. china PMI. oh my.. the game is pretty obvious now and i made a killing by buying oil and the /es at yesterdays “weak” close but i mean come on – this market is just silly and not to be trusted.
Is that Kim Kardashian… or Marissa Tomei?
That’s some effed up scheiss, though.
I wonder if they have “don’t ask/don’t tell” in the TSA, too?
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