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As for the markets, stocks had been fading steadily since the morning’s huge pop open, but have more recently started to find their footing. Apple’s trying to get back above $550 but it’ll likely just follow the market from here to close. How long can the euphoria last? See my post from earlier this week (https://tradingwithcody.com/2012/12/27/trade-alert-history-rhymes-so-remember-the-times/) when I wrote:
Last year’s big rally literally started on December 28, 2010, as the forces of panicky headlines and tax-avoidance selling were theoretically the primary near-term drivers of the markets.
That means, we probably need to already stop with the near-term bearishness I wrote about at the top of the markets last week and start to get ready for a potential, if obvious, pop in the new year. This sure ain’t scientific and that’s why I call it a “Feet-to-fire” analysis, but as Mark Twain told us, “History doesn’t repeat itself, but it does rhyme.”
The markets are up 3-4% since I wrote that and while I still think the path of least resistance remains higher, I’m trimming some of the stocks I was buying during the panic, as noted earlier.
Steady as she goes, despite the big waves.