This is the time where so-called professional money managers paint the tape. End of quarter. End of calender year even better. This type of open secret is reflective of the fact that there is little to no regulation by oh say, the SEC.
There are more longs on the watchlist lately. Oil names. Gold. Which by the way is breaking out of it's consolidation and awaiting the confirmation of new highs. Silver should also be watched closely for the big breakout. Silver could go nuts to the upside. Added more gold on Friday. My intention is to get bigger.
As for the market as a whole the bulls remain in control for the moment. Wait until the volume returns in January and we'll get a definitive direction one way or the other. The SPX and RUT sit at or near key levels.
We could go higher from here. I hate to say it but it could happen. It wouldn't take much to break the bears now. We are teetering. I'm ever so slightly net short. The financials could bounce and that is the key. Need to be more selective in shorting those names.
The consensus however now anticipates a January swoon. Financials get hammered again. If we get that scenario this market will break and it will be time to press your bets on the short side. The point is to have a plan for either scenario. Take what the market gives you and swim with the tide whenever possible.
Regardless of the near term machinations next year will be very interesting. Of that I'm certain.
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