Morning Report – December 27, 2013
As we wind down to the end of 2013 the major market stock indexes continue to set records each day.
Every trader in the world knows that stocks are overbought, but shorts who are trying to pick the top continue to get crushed daily. The chart of the NASDAQ shows how steep this move has been since the intraday reversal after the Fed’s announcement. Back in October, the NASDAQ moved up sharply and then went into a multi-day consolidation period, had a one day shakeout before moving higher until it consolidated again. We can probably expect same sequence to continue until we see strong evidence that the market is reversing. In my opinion, the NASDAQ will remain in an uptrend unless the low of December 18, the day of the Fed’s announcement, is taken out on the close. As long as index continues to make higher highs and higher lows, it remains in an uptrend. Read full report