Light Volume Trading Continues

DJIA - 31.62, -0.37% SP500 - 3.38, -0.39% NASDAQ Comp. - 19.92, -1.30% Russell 2000 - 10.62, -2.23% Exchange NYSE NASD Advancing 1,480 826 Declining 2,358 2,079 Oil $40.02 +$2.31 Gold $874.60 +$4.10 SOX 201.95 -0.05 VIX 43.90 -0.52 Strongest Sectors: XLE +2.19%...XLU +0.21%...XLK +0.07% Weakest Sectors: XLY -1.92%...XLI -1.87%...XLB -1.81% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF Trading volume rose on Monday but still traded well below average volume. Expect volume to increase on Tuesday and Wednesday while staying below average. The markets are closed on Thursday, New Year's Day. Year end tax selling will be finished on Wednesday and it will be interesting to see what instiutions will do next week. The broad indices continue to trade inside their sideways trading range. Friday which was the lightest full day trading volume this year, was just slightly ahead of Wednesday's half day volume. Monday's volume in many cases was ahead of Friday and just half of average volume. The Chart Signals suggest a greater probability of a rising market after the first of the year, however traders need to stay focued on what the market is doing. $SOX finished near unchanged which is a sign of strength on a down day. Individual semiconductor stocks like MRVL, BRCM, TXN and ALTR are exhibiting basing pattern formations and potential trend reversal. Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…DLTR…FLR…JCOM…JEC…PCR…ATK…B…IRIS…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…PSSI…CERN…FWLT…MTW…QSII…VMI…OI…CHU…FLS…BCO…NDAQ…ROST…VIVO…AET…ESRX…UTX…APH…CAM…CCC…CIR…CL…DECK…DV…EPR…ESI…GES…GILD…JW.A…MYGN…NOV…ACL…BLUD…DNA…HLF…OSIP…AGN…KEX…LAYN…RCI…CELG…NEU…PSYS…RIO…SHW…AMED…PETS…SOHU…SPTN Moving Above 30 DMA = 6 BCR…CAM…FLIR…NGS…NOV…SPN…WAB Moving Below 30 DMA = 9 AMX…ANSS…CBST…CTSH…FSTR…GME…NIHD…PCP…PPD Staying Below 30 DMA SWN…MMM…STRA…AME…GIS…PTNR…TECH…AXYS…MON…MTD…URBN…ICLR…LNN...AAPL…TECH…EZPW…MCRS…MOS…POT…PPD…RTN…SINA…TEVA…WCG…AFAM…MBT…PRGO…RIMM… CHTT…NILE Monday’s Action Moving Up: POT, AEM, AGU, MOS, IPI, SOHU, AFAM, FSLR, MON, GDX Moving Down: MA, V, CLF, NUE, KMT, NIHD, ESRC, SINA, LAMR, NDAQ, ANR, GRMN, HANS Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down