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MARKET WRAP UP 12/09/10
Although we are on top of the proverbial mountain, right at 52 week highs on the S&P 500, the price action this week has been indecisive and frustrating for all but a few stocks. In all forms of gambling where strategy is an integral component, it is selective aggression that gets the money over the long run. As fun as it may be to crush the shorts when names like OPEN and NILE run, it is actually more important to exude patience and regroup those other times when the market is consolidating and chopping up the majority of traders. Coming into this week, I discussed the idea that we would need to see some digestion in the general 1220-1230 range on the S&P. Thus far, we have seen precisely that–A high and tight consolidation.
Going forward, a quick one or two day dip is highly likely to be a Christmas gift for swing traders with cash on had to take advantage. Closing out this week with yet another boring, choppy day would also do wonders for setting up many large cap tech names that are basing above all major moving averages, namely AAPL AMZN BIDU CRM GOOG NFLX PCLN VMW.
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Hey Chess, do you follow/trade commodities at all? I’d love to hear your thoughts on some of the commodity etf’s. Thanks for great posts.
I will try and post some charts of them over the weekend. Thanks. skog.
Hey Chess,
Hope all is well. Just wanted to see your thoughts on a stock I purchased early last week, TTI. It finally broke through $11 – a level which it failed to breach for 6 months. It seems to be consolidating above the resistance, but no major movements as of yet. Do you think this has some breakout potential in the near future?
I hear nothing but great things about 12631 – might have to come check you guys out in there soon!
Thanks.
Very nice base on TTI–huge potential.
You should definitely come check out 12631. We have a great community going on top of all the content RC and I provide.