There are definitely enticing arguments both ways for tomorrow and the beginning of 2011. In the past 10 years, the last day of the year have not been bull friendly. Plus, given how far we had run, odds maybe more stacked against the bulls.
We also have classic holiday trading again with the hot money chasing highly speculative stocks. Small-cap China names are dominating the momentum action. Breadth is positive but there isn’t any clear sector leadership or new highs expansion.
That said, we have cool indicators from Market Rewind leaning toward a buy, albeit possibly offset by the change in trend in the Nas. Tough decision indeed and I have an eye out for bullish opportunity tomorrow, and look to add on dips while leaving some dry powder for the New Year. Sometimes less is more.
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