Daily Wrap

DJIA +48.38 (+0.38%) to 12,836.89 S&P 500 +3.22 (+0.23%) to 1,391.03 NASDAQ +9.87 (+0.34%) to 2,926.55

Today was another boring consolidation day and was we noted here and on Stock Twits (WSConsensus) that Holiday trading is here and will remain until Monday but in a broader note we are entering the window of holiday trading.  Along with this entire week having an upward bias I wouldn’t be surprised to see Friday have a holiday drift higher as well as the markets are open for a half day of trading.

We had economic data today including Unemployment claims coming in at 410K (below estimates), Manufacturing PMI which came in higher thank expected at 52.4 while Consumer Sentiment lagged coming in at 82.7 below estimates.

I am not going to make more out of today than necessary in this holiday session and I updated charts today on Stock Twits and will be posting new or updated stock ideas on the site so we can prepare for what is ahead in the markets.

Our stance has been for a bounce toward the 20 Day SMA after seeing oversold levels.  We are finally approaching and essentially are at the levels.  Ideally when I pictured the move I saw a push going right into a hard sloping 20 Day SMA which is first harshly rejected for a trade and depending how it acts gauge if it was going to head back toward or to new lows or just a quick tradable drop targeting a fib.  Now we have had a slow holiday grind higher to a 20 Day  that does not have the slope it once had and is somewhat leveling as price approaches.

I still think my bias is to use this holiday rally to lighten up or hedge longs but I will have to watch Friday’s action and will have to step back from the short the 20 Day MA idea and will see if we can push on Friday and use that push to possibly take a shot short.