Turnaround Tuesday In Full Force

David Frost // Market Outlook


December 2  

Today the stock market staged a rally, taking back the entirety of yesterday’s decline.

While I still believe this market is poised for a pull back, keep in mind it’s never easy to kill a bull.  The market remains resilient and on the surface looked like it simply shook off Monday’s down move, but under the covers there were many stocks that did not participate which can be deceiving to the naked eye.

As I will continue to discuss, there are higher prices ahead for the major indexes, but we certainly need some form of a correction before staging another rally in earnest.

The Crude Oil market was weak today and many of the suspect energy companies remain under selling pressure.  This is the time of the year where you will begin to see tax loss selling and these weak energy names that have been hammered are ideal candidates for more selling into the end of the year.

Gold took a sabbatical after Monday’s large rally, but this would be considered normal under most scenarios.

More detail is found in tonight’s video.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost