Off to a Great Start in 2006
January 3rd, 2006 by BWV
Today has been wild:
- A morning gap up that got sold hard (like many Monday morning gaps up)
- Fresh lows for this congestion phase. At 10:30am, IWM hit its lowest point since November 17th.
- A huge rally at 2pm after the minutes from last month’s Fed meeting were published.. and contained language saying future tightenings “probably would not be large.”
And that’s just the action in the major indices!
This candlestick chart of IWM shows the big upside reversal and how it fits in with the action of the last 2 months. My take? We are ready to move up & out very soon.
With the XAU index up a rock solid 7.5% (that’s an index!), Gold stocks are obviously kickin’. So are my energy, techs and Indian stocks. With the DJIA up 110 and NYSE breadth running 2400/900, it’s no shocker that only 6 of my 32 holdings are negative on the day.
This is the best session I’ve had in a long time, with all accounts up over 2% on the day.
