Santa Keeps on Bringing the Gifts!

The equities markets are higher this morning, with all major indexes on the plus side, with the exception of the financial, which are off a couple of ticks. The Dow continues to be the strongest, up .35% vs .25% for the SPX  The bond market continues to take serious hits, with the long bond down again, trading at 4.54%, and the 10 year down, trading at 3.49%  10s30 spread continues to flatten, now at 105 bibs. However, we notice the decline in bonds is losing strength, and may be nearing a bounce... but not quite yet. Oil is at 91.18, off .31 and Gold is at 1,407.3, up 1.70.  The Euro is  up  a couple of ticks at 1.31, while the Dollar 80.13, down .18.  The Yen continues to strengthen against the Euro and the Dollar.

Our Proprietary Momentum Change indicators continue to hold the SPY Buy signal, and after 2 days of teetering, is today strengthening.  It is looking like the Year End rally will hold through the New Year.  Our Sell signal in the FXE remains in effect, although the trend is losing strength.  Our Buy signal in the Dollar, trading the UUP, is beginning to look a little ragged, and we are watching closely for a momentum change.  The down trend seems to be strengthening.   Our Buy signal for Oil continue strong, with the trend strengthening, however price is nearing trend resistance line.  Price maybe in for a little back and forth shortly.

Enjoy the Year End rally, and get ready for the fireworks next year.  We will be ready to trade either side of the market with the same enthusiasm.

Best to Your Trading!

Bill

GM IPO a Big Hit

It looks like Wall Street  can't wait to get their hands on Chevy's and Caddy's.  The GM IPO coming today reportedly at $33 per share is now reported to be oversubscribed.  Morning call has the Dow up 100 pre-open.. must mean that what is good for GM is good for America!


The higher open still leaves the indexes with in their newly formed down trend channel....Pre-open excitement should wane by 10:30. and we should get a better idea where the day is headed.

No Sell Signal yet

The sell signal first generated by our Proprietary Momentum guide on 10/19, and confirmed 10/26 and 10/27  is still in effect.  We have received no interim buy signal, so the Sell Signal is still in effect.  However, good trading practice requires Stop Loss orders, and we got stopped out 11/1 with a 1 1/2 point loss.
 

We have been waiting for a confirmation of our original Sell Signal to re-enter the market, but have not yet gotten a confirmation.  However, we are very close and if the market is weak today, we may well get a Sell confirmation this afternoon.

Make it a Profitable Day!

Bill