5 More Stocks For Your Stocking
Impressive price and volume action Tuesday is consistent with the resumption of the intermediate term uptrend and Moneyshow’s
Tom Aspray has five stocks in the hottest sectors that may reach their buy levels before Christmas.
Strong market internals Tuesday along with heavier volume indicates a sustainable new uptrend is underway. This is in sharp contrast to the post-election mood when many concluded that the fundamentals were warning of a weak economy if not a new recession.
From a technical perspective the action of the stock market since the June lows has been suggesting that the economy was actually doing better than most expected. It was just two weeks ago when the mixed economic data raised more concerns about the stock market from the fundamental analysts.
Especially impressive on Tuesday was the volume in many individual stocks as it was the highest in many weeks and confirmed that there was real buying to accompany the impressive price action. This favors more gains as we head into 2013 but there are clearly going to be setbacks along the way especially until a deal is reached on the fiscal cliff.
New buying now should be focused, I believe, on stocks in the strongest sectors as the Select Sector SPDR Financial (XLF) and the Select Sector SPDR Consumer Discretionary (XLY) are beating the yearly performance of the Spyder Trust (SPY) by a wide margin.