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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:
And do you remember how despite the mainstream media’s obsession over the same issues peaking at about the same time last year, do you remember how the markets traded to kick off the year?
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.
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