Morning Report – December 31, 2013

This is a time of the year that commentators look back on the year that was, and prognosticators tell us with the upcoming year will be in their opinion. They have insight, or they claim to have insight, that the rest of us mortals do not have because I can’t tell you what’s going to happen in the market tomorrow, much less than the entire year. All I can do is look back to what has happened in the recent past and give what I hope is an informed opinion about what may happen today.

With that in mind, based upon the recent behavior of the major indexes, I feel that the bias is still to the upside for stocks. Remember, this is a day-to-day evaluation, but the NASDAQ is holding up well, and as you can see yesterday’s candle closed in the upper two thirds of its daily range at 72.63%. We are seeing some weakness in the leadership stocks with several of the Canary stocks and the seminar leaders selling off. Yesterday, only one of the Canary stocks was positive, and that stock was Tesla. Read full report