Do not look for predictions of the market over the next year. No one knows what the market will do. All we can do is discern the current trend and ride it until it ends. We end the year in the middle of a QQQQ short term up-trend, which reached day 28 on Thursday. The prior short term up-trend lasted 51 straight days and was followed by a 2 days short term down-trend. With the exception of this brief down-trend, the market has been rising for 79 days! It doesn’t get much better than this. The monthly chart of the QQQQ (Nasdaq 100 index ETF) shows the large rise in tech stocks since the early 2009 bottom, followed by a few months of consolidation in 2010 and the continuation of the up-trend for the past 4 months. The QQQQ has risen +18.4% since December 30, 2009. At Thursday’s close of 54.66, the QQQQ is slightly below the 2007 pre-decline top of 55.07. Will it hit resistance here? The Worden T2108 indicator is only at 65%, in neutral territory. So, I will remain fully invested in mutual funds in my university pension, and holding stocks and options in my trading accounts. Next year will undoubtedly bring some down-trends, and I will reduce or eliminate my long positions when they become evident. Until now, let’s all enjoy this incredibly strong market up-trend. Happy New Year to all of my valued readers. I hope you have benefited from my posts. Let me know.
