Tuesday, December 18, 2012
Strong gains on heavier volume than the previous session for all three indexes viz SPY, IWM and QQQ which is encouraging. However, all indexes are closing in on resistance levels. Breadth continues to lack in this uptrend. But lack of breadth in terms of number of stocks participating in the move either way has been relatively low this year. This lack of breadth does not give me enough conviction to get fully invested. Still this is a headline news driven market. If a trade is working in your favor, keep the profit target small and cut your losers even faster in this market.