The major averages are working off the short-term overheated conditions we arrived at yesterday via slightly down action this morning. I am seeing plenty of individual issues green on my watchlist and in my portfolio inside 12631. So, the action is still constructive overall. With the consumer discretionary stocks and financials hitting multi-year highs yesterday, they sure seem to be paving the way as leaders for another leg higher. Also keep an eye on the engineering and construction stocks, in addition to many in the industrial sector. They have come on strong and are resurgent in their own right.
In sum, quick finger food trades during the holiday season is likely the course of action even as the indices perhaps go flat into year-end. I’ll be back with some specific ideas if this action keeps up.
As an aside, it looks like Instagram is trying to climb out of the hole with respect to its new terms of service.