A Strong Finish

 | Jan 09, 2012 | 4:17 PM EST
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Once again, the market saw solid dip-buying after a weak start. Four of the first five trading days of 2012 started slowly and closed well. Strong finishes tend to indicate that market players are trying to add long exposure intraday because they are afraid the market will continue to run without them. It's better than a series of strong opens and weak closes.

On the other hand, volume is mediocre, breadth mixed and we aren't seeing much in the way of point gains on the indices. There are some pockets of momentum, with biotechnology the most notable today, but there also is some troubling action in Google (GOOG), Target (TGT) and Amazon (AMZN).

Technically, we aren't in bad shape. We have worked off the overbought conditions and are building a decent base. There is better non-correlated movement in individual stocks for a change -- we aren't as sensitive to news flow, which helps.

I don't find it easy to put much money to work in position trades, but the shorter-term longs are paying off -- if you catch them right. I continue to have a nagging feeling we are in for a day of aggressive profit-taking soon, but I don't see any reason to act on that at this time. The bulls are chugging along just fine for now.

Have a good evening. I'll see you tomorrow.

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