Today’s rally in the general markets surprised me in point total but the volume is typical of holiday trading and nothing really has changed in my opinion. I will hold off taking any short positions until the new year just in case bulls want to push this market higher so the main sectors I’m going to focus on are gold, silver and bonds. Since tomorrow is a shortened day I’m going to hold off doing extensive research and save that for the new year.
This brings me to TLT, which has one of the strongest momentum charts out there and you can see it started off the day in the red and spent the rest of the day moving higher on increasing volume. This is a good sign that this issue wants to head higher. Looking at the chart it looks like it’s moved too much to take a long position, but these chart patterns have a tendency to move a lot higher than anybody can expect.
