Friday, December 11, 2009

2nd Gap Up

Unless the market is very bullish, the stock market rarely leaves 2 unfilled gaps in a row.  We've had that on this run up, so it can happen again.  But from the past couple of weeks trading, I don't see the bullish initiative required to leave these gaps unfilled.  The sentiment surveys show very few bears.  From past instances, a lack of negative sentiment doesn't usually lead to aggressive up moves.  We have positive retail sales, which provides the excuse to buy.  I expect traders to sell the gap up today.

3 comments:

Anonymous said...

Long PROV @ 1.53

-Ol' Dawg

Anonymous said...

I'm taking it very light here Dawg.

I don't want to be short or long the index.

All I can say is that December could very well be a month dedicated to a topping process.

Then again, we do have the January effect, and that throws a monkey wrench into this bitch.

Green Elephant said...

So far it looks like another boring day, like yesterday.
Oh well...