I did a bit of selling late in the day yesterday. Part of the reason was that I was tired of watching those stocks just linger. The other, larger reason, which is related, is that I feel like the market isn't acting like I expected. Given the good news over the last few days I was looking for the market to have a strong follow-through to Wednesday's rally. That didn't happen. The Nasdaq's been struggling with the 2004 highs of 2,153 for the last two sessions. So I dumped all my tech stocks but I'm still holding onto CME as well as a couple of steel stocks that I bought yesterday.
I just finished watching this week's edition of 'Bulls & Bears' on which Scott Bleier basically summed up what I've been thinking the last couple of days. He said that he expects December to be lackluster because all of this recent good news was anticipated, as evidenced by the November rally. I'm not one to make predictions but I have a feeling that Scott will be right. It could be argued that the Nasdaq has made an 11-month long cup pattern this year. If that's the case a pullback to make a handle of a potential cup & handle pattern may be right around the corner.
Here's a daily chart of the Naz followed by the weekly chart:
