I have always equated holiday trading in the market to nighttime fishing, in many respects. The stiff competition is sound asleep or on vacation, and there is a more relaxed air to the task at hand. As many large institutional players are away from their trading desks through New Year’s all of the popular bearish arguments do not carry quite the same gravitas. That could easily change soon, but right now we are seeing the small and mid-cap stocks lead the way higher.
As a result, I am focusing my efforts on those segments of the market in my portfolio allocation inside 12631. The financials have seen a great surge, but now the true test comes as to whether they can hold their recent gains largely intact. Beyond that, large cap techs like AMZN and EBAY are enjoying much-improved action after recent pullbacks.
Into midday, I am looking inside The PPT for the very best short squeeze setups amongst the high beta stocks.
