by David Chojnacki
The final day of the year was a carbon copy of the last week, with little change on light volume. It was another good year for the Market with the S&P up 13%. At the close, the DJIA was up 7.8 points, the S&P500 losing just 0.24 points, and the Nasdaq100 gave up 7.8 points. Breadth was positive, 1.3 to 1, on light volume. For the week there was little change, with the DJIA up 0.03%, the Nadaq100 losing 0.5%, and the S&P500 up less than a point. The DJIA near term support remains at 11500 and 11444. Near term resistance continues at 11643 and 11658. The S&P500 with its small loss saw its MACD drop below signal and the ROC(10) declined. Near term support continues at 1250 and 1243. Resistance on the upside remains at 1262 and 1275. The Nasdaq100, which was the weaker of the indices last week, dropped below its 10D-EMA and its ROC(10) is negative and declining. Since the Nasdaq100 has been the Market leader, it will be important to monitor how the technical signals hold up in the first few days of the new year. Commodities and gold sprung back yesterday to finish the day and year strong. The VIX gained 1.3% to close at 17.75. Volatility remains relatively low.
Trading Trend
Long term, the bias remains to the upside for all three major indices. Short term, bias continues to the upside. Near term, another sideways session, however weakness in the Nasdaq100 needs to be followed closely. Technicals continue to remain strong, but we are nearing some important resistance levels. Futures at(8:15am) are up strong versus fair value. The European debt crisis and U.S. economic recovery confirmation are the top Market movers.
Major Economic Reports Today:
Construction Spending-10:00am ISM Index-10:00am
MAJOR INDICES Short term support and resistance level | |||||
| DJIA close 11577 | SP500 close 1257 | N100 close 2217 | |||
11542 | 11643 | 1254 | 1262 | 2215 | 2223 |
11500 | 11658 | 1250 | 1269 | 2213 | 2225 |
11481 | 11734 | 1244 | 1274 | 2200 | 2238 |
11450 | 11867 | 1243 | 1275 | 2188 | 2245 |
11444 | 11900 | 1235 | 1288 | 2186 | 2250 |
11325 |
| 1225 | 1300 | 2175 | 2262 |
11319 |
| 1219 |
| 2171 | 2275 |
11307 |
| 1216 |
| 2161 | 2300 |
11295 |
| 1215 |
|
|
|
Trade Ideas
Open trades-Take profits- SMH-+13.4%, UUP-+1.3%, IWM-+16.7%. Take loss-IDX-(-0.7%), CHIQ-(-12.4%). Hold with stop loss price in ( )- XLE+10%(67.50), DAG+30%(13.13), DBC+10%(26.90), DBA+14.3%(31.60), GLD+4.3%(136.50), XLF+5.6%(15.80).
S1F in the News: http://www.streetonefinancial.com/news.html
DISCLAIMER LANGUAGE
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY’S DATE, UNLESS OTHERWISE INDICATED
This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Street One Financial LLC (S1F) have not independently verified the facts, assumptions and estimates contained in this publication. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this publication. The information contained in this publication is not and does not purport to be a complete analysis of every material fact respecting any company, industry, ETF or other security. Additional information concerning this publication may be available on request, if available. Many of the securities mentioned in this publication involve a higher degree of risk and more volatility than the securities of more established securities. For these and other reasons, the investments discussed in this publication may be unsuitable for investors depending on their specific investment objectives and financial position. Each investor should complete his or her own additional investigation and assessment prior to making investments in any securities. Transactions in securities mentioned herein may be effected only in those states where such securities are qualified for sale. Street One Technical Analysis LLC is an independently owned Company from Street One Financial LLC (S1F). S1F is an independent Company specializing in ETF’s, equities, and options. S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F may work with the ETF issuers to understand their products more thoroughly and how they can complement an investor's portfolio