Indices marking time.....

Indices are trying to digest gains, year end low volume will continue until January 2nd, 2018. This gives a chance to look @ your portfolio and position for 2018.

Seasonality does not favor stock market in January, thus a feverish count for " January effect "....as goes January, so goes stock market for the year.

This January may be more challenging as majority of good news is priced in.

Many sectors may get a bid in January like Gold, Silver.......

SO...it is a matter of sector choice for start of the year.

Financials do not have a good record for January either.....

Here is a list of sectors / index from RSI point of view :

DOW        74.59

S&P 500   70.01

Nasdaq      63.73

GDX         62.70

EEM         59.80

RUT         58.93

SOX         52.14

Based on the above, EEM looks interesting here, GDX should do well.

While our front line indices takes rest or pulls back, there are areas to explore.

Wednesday is the last trading day for 2017, it may present some opportunities as some lock in profit and some book losses.

It will be interesting as to how we close this year in the last week of trading, this is a 4 day week in US and 3 day week in Canada, UK, Hong Kong & Australia as Tuesday, they are all closed.

Good luck with your strategy for 2018.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed