Sunday, December 16, 2012
Market continues to hold on to gains
Markets continue to hold on to the gains. If you look at SPY, it broke above the trading range last week and quickly fell back to the base. Breadth remains extremely low and yet this rally remains intact. The Fed is trying everything it can to prop up the market with the announcement of another round of bond buying last week. The reaction from the market was 'sell the news'. But it appears that the bulls are in control so far. This environment is very hard for small traders as this choppy action creates a lot of whipsaw which is dangerous for ones portfolio.