MomentumOptionsTrading.com Midday Update for 12/30/2013
Market Mixed, Blue-Chips Up
Futures were showing a flat open throughout the night and into today’s open which is how the first half of trading has gone thus far for the market. A higher Dow close would be bullish to start the week but the breakdown in the Social Networking stocks could be telling us something.
This week will be light on corporate earnings and with 4Q and yearend results starting the second week of January there could be some warnings or lowered guidance. As we wind down our current trades, we expect to be super busy in the coming weeks with a bevy of new trades. We gave extended price targets for the major indexes into January in this morning’s update if the bulls can clear our yearend fluff targets and this upcoming earnings season will play a major role on if the rally continues or if the bears come out of their winter hibernation.
As we head into the second half of trading, the Dow is up 9 points to 16,487 while the S&P 500 is lower by a point to 1,840. The Nasdaq is down a 6-pack to 4,150 and the Russell 2000 is declining by a half-point to 1,160. The S&P 500 Volatility ($VIX, 13.03, up 0.57) is up nearly 5% and bears watching as a close above 13.50 would be bearish.
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