Happy New Year to all......
We can expect to see volume come back in the indexes and stocks this week. It remains to be seen if Institutions want to continue to sell the leaders. The indexes are still in very good condition; however have rising in very light volume. The leading index, the Nasdaq, only has 3 Distribution Days on its tally. Leading stocks have sold down in equally light volume and in most cases their 50 Day Moving Average have served to hold. BIDU was the first leader to lose its 50DMA and then last week NFLX and CMG failed to hold their 50DMA. It doesn't appear that any severe damage was done but definitely gives me reason to be on high alert. It doesn't pay to try and anticipate what the market will do but rather wait, observe and then make trading decisions. The liquid leaders of 2010 are all within reasonable distance from new highs and until otherwise proven guilty are on any longs short list for the start of 2011. However, some are extend and many don't offer logical buy points here. Stocks that continue to lead include:
AAPL,ACOM,AMZN,ARMH,CRM,FFIV,FTNT,LULU,LVS,NFLX,OPEN,PCLN,RVBD,VMW
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