On this Thanksgiving Eve, we are looking at some pretty typical holiday trading action with a low volume churn generally favoring bulls. Overall, the market remains in snapback rally mode, as witnessed by how well last night’s weakness in the futures was shrugged off. On the one hand, I am still respecting the notion that the market must prove itself further become I’d position my portfolio very heavily long, thus keeping cash levels at least 50% or higher inside 12631. On the other hand, I am playing along with the rally until it shows more signs of merely being a relief bounce.
1390-1400 is still the first major area I am looking at as a big test for the S&P 500 after this bounce. In addition, I am watching stocks like GME and HDB, which I have previously mentioned and are impressively breaking out this week form tight technical bases.
http://www.youtube.com/watch?v=dKF612sPh6s
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