Although it may be a light week for hedge funds and other institutional investors this market is not really taking a break. The market continues to roll on higher. We continue to have a healthy sector rotation occurring with many individual stocks pushing out to new highs or emerging from solid technical bases.
Yesterday we had some continuation within the homebuilding sector as the SPDR S&P Homebuilders ETF (XHB) gained on 1.15%.
The usual suspects as far as markets leaders go look to be making a year end move to close on their highs for 2010. Netflix, Inc. (NFLX) had a strong day yesterday surging 4.6% and could certainly head a bit higher from here.
On my current watchlist, I am keeping a close eye on Apple Inc. (AAPL) and F5 Networks, Inc. (FFIV) as I expect they could be the next in line to find some investor interest. I also wouldn’t be surprised to see upticks in oil related names; they have digested nicely for some time now with the Oil Service HOLDRs ETF (OIH) spending December so far building a base between $134 and 52-week highs at $140.
The agriculture stocks woke up a bit as grain markets across the board continue grinding higher. Intrepid Potash, Inc. (IPI) jumped out to new highs for the year adding 3.8% for the day while sector leader Potash Corporation of Saskatchewan (POT) gained 2.3%.
Lastly, I am watching International Business Machines Corp (IBM) as the stock has a several-month base and looks poised for a move to higher prices.
My advice would be to continue trusting moves out of decent consolidations; these breakouts are following through nicely.
*DISCLOSURE: Long AAPL
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
