Special Risk Capital Management LLC

Markets Drift Higher December 25, 2015

Happy Holidays to all !

In Wall Street terms, they are on vacation this week (and mostly next week too).  Tough job.  So we saw very low volumes this week.  What that means is that even modest sized orders (buy or sell) can move prices around, and since this is generally a bullish time of the year, the they tend to go higher.  We’ll see more activity next week, but not really get a good read on strength until after the first of the year.

Of note is the improving Market Sentiment and Money Flow readings which are back to Neutral.  What I’m watching are support & resistance price levels along with volume coming in on up or down bars (the red/green lines for distribution & accumulation).  My theory is (from the price structure) that this is a re-accumulation phase.  So far that looks like that could hold.

I’ve got a new scan for sector / industry strength based on the number of stocks in those sectors that are showing short term strength.  That pie chart is below.

It’s a little busy, but you get a better handle on what is in a positive move.  (just follow the listing around counter clockwise; click on graphic to enlarge).  That’s it for now, we have a slow market so it may be good to take small positions or just wait on it.

…………….  Tom  ……………