For the week ending Dec 18 2009
It was a weird week with a number of conflicting signals. I've included the macro view at the bottom of the post for those that would like to draw their own conclusions, but I wouldn't suggest reading too far into them.
Natural gas (UNG) and the US dollar (UUP) were the standouts this week. Nat gas continues to play out the Adam and Eve bottom formation, though we were stopped out and had to re-pounce after the 8.50 close. The dollar is kissing resistance after Friday's action and looks eager to breakout. If we fail at resistance here, we'll likely consolidate near the 22.25 - 22.50 range before making another attempt higher.
Stocks are still in the same trading range they've been in for the past few weeks, and until they breakout of that range it's wise to sit patiently. Breadth continues to hold steady, suggesting that the next move for stocks will likely be upwards but there are no clear signals at this point. Action is likely to be choppy but uneventful over the next few weeks with many investors on holiday.
Merry Christmas! Enjoy the shortened holiday week.
