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MARKET WRAP UP 01/11/11
With the date being 1/11/11, it is only appropriate that many market players perceive the price action as being too bizarre to trade aggressively. After seeing some intraday volatility, the bulls held on to close the S&P 500 up 0.37% to 1274. Indeed, while the pockets of momentum are seemingly becoming tighter, the broad market is holding up astonishingly well. Seeing as the market will usually do that which frustrates the greatest amount of participants, it only makes sense that we drip higher on a daily basis, as most everyone freely admits that we are extended and due for a mild correction.
While an imminent correction seems like the obvious scenario, some areas of the market have already pulled back in the past week to what should be strong support zones. Moreover, they moved off of these key areas today, namely the emerging markets and coal sector. Thus, the best strategy continues to be one of trading the best individual setups, while respecting the short-term key resistance and support zones on the S&P, at 1276 and 1262 respectively.
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Small caps, other than a couple of pops which were promptly sold off, haven’t really done anything since about the 22nd of Dec… Sucks for me and my TNA…
Bought some UWM to help hedge my EPV. Holding DWA -0.09%, EPV -6.43%, PWRD -0.61%, SKX 4.72%, SOLF 9.82%, UWM, and about 50% cash.
Bought some EEM too.