Wednesday, December 02, 2009

Market Talk

We have market close to a break-out into new YTD highs but oils and financials lagging badly. This means to us that even if we do break-out there is a higher chance than usual to fail, or that this is the last leg of the March rally before a correction sets in. Of course we could be wrong but how can the market have a healthy break-out with the financials and oil stocks under their respective 50 SMA? Small-cap gambling-type stocks are where the best action is right now --- again a not too healthy sign for the general market.

Having said all that, for the most part we're day-traders and if long side is where the action is, that is where we will be. But for you swing traders out there, especially in extended sectors such as gold, stay alert.