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MARKET WRAP UP 12/27/10
As we come down the homestretch in the final week of 2010, the resilience of the bulls and the market at large cannot be ignored. One top caller after the next has lost credibility with remarkable speed over the past several months. Despite the steep run up since early September, from 1039 to 1259 on the S&P 500, the daily charts of the leading indices and sectors remain constructive. In other words, just because we have gone up a lot does not mean we are coming down quickly–at least for the time being. The idea that sellers will become aggressive this holiday week is likely wishful thinking for those underwater on bearish bets. Instead, it is likely that bears and aggressive profit-takers will wait to make their moves until early next year, if it all.
As for the rest of this week, I expect more slow, light volume trading. Thus, it is key to avoid trading out of boredom.
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Today I sold my GNK (-4%) and TIE (-2.5%) and bought some SKX. Holding CSCO (+4%).