Full Steam Ahead
The market regained its bullish ways this past week with a nice bounce of the area of 50 day moving averages to power ahead to new closing highs for 2010 in many indexes. This had been anticipated as our long term market timing model has been in buy mode and we expect most consolidations to resolve the range to the upside. This recent rally is even more impressive because after the “gap and go” day on Wednesday, the market responded with 2 more positive days and even spent Friday rallying after the gap down on weak employment numbers.
The last few weeks of the calendar year can be a very positive period in the markets and we expect this year to see more rally into year end. This bodes well for both long term investors as well as short term swing or day traders. Strong trends tend to offer good opportunities to hold positions longer and benefit from larger moves. Continue to focus your trading efforts on the long side of the market and you should be rewarded into December 31 and the early part of 2011.
Past performance not indicative of future results. Futures trading involves substantial financial risk. Please consult your personal financial advisor before using this information for your own trading purposes.
