December 29th Daily Market Comments

Although the week between Christmas and New Year’s does not usually have any relevant forceful moves, it does provide an indication of what might be strong going into the first quarter of the next year. Gold stocks are picking up steam, that becomes a viable sector to watch immediately after the first of the year. The bearish trading yesterday made the prospects of breaching the 20,000 level in the Dow more tentative. Investors became more discouraged the longer it took to get up through that level. This is a perfect illustration that prices move based upon investor sentiment, not fundamental reasons. Use the analysis of each individual stock chart to decide whether to remain long or short in specific stock positions.