Beneath The Surface

Most stocks I follow are on track to trade about 25% of normal volume. It is very thin out there. The indices are showing minor losses but the moves in sectors are quite a bit larger. Financials are the best performing sector, while healthcare is bringing up the rear.

There is a lot going on today. Window dressing, tax loss selling, portfolio repositioning and to top it off there is little liquidity which exacerbates moves. There is likely some opportunity in these moves. For my part, I am happy with my positioning going into the New Year.


Anonymous said...

Careful with the TBT(short) trade. Rates are clearly going up next year.

Anonymous said...

Oil hit $80 going higher. Rates going up. Unemployment? The dollar? The market could be ready to pullback.
I'm not sure how much the fed is going to try to sell in treasuies next year. I think it's like 2.5 trillion? Or billion? Who's gonna buy that without higher rates?? Be prepared.

Anonymous said...

Game plan for the new year...

funds, hedgefunds, prop desks shoot long bullets into the market to generate a small rally.

retail gets blinded by the light and jumps in thinking January effect

smart money sells into retail buying including everythign he was long from last year.

The Ol Dawg shorts it as smart money sells into the crowd.

Mkt goes to 1000 by the end of January and the Ol Dawg gets long again.