Finally a Four-Day Rally Traders Could Stay With!

Finally, Santa delivered a four-day methodical move that traders could have stayed with. Tuesday we got a nice gap and go that never wavered and closed strong! Investor’s Business Daily put us back into a confirmed rally and there were igniting bars in several sectors.

Wednesday started off discouragingly, but provided a buyable pull back that held all retracement rules and closed strong, although the Nasdaq was weak following Oracle (OCRL) earnings miss. Thursday we saw some upside follow through with some leaders and laggards, with the banks even acting the best following ‘Euro Tarp’.

Today S&P futures are up about 5-7 handles and approaching the 200day moving average at 1259. This is an area to trim any longs you have left from earlier in the week. 1260-1266 would be a very big spot to close above, but I would not add through this point if it tries today. The next big level would be 1292, the high from October. As of now, the momentum is on the side of the bulls and theirs to lose. This week was the definition of a “Santa Claus Rally”. It was not super-powerful like some oversold bounces we have seen during the past few months, but at this point we take what we can get.

I would not get too punch drunk excited about this and fall asleep going into New Years! I will be taking most of my profits into this up open.

I wish everyone a Happy and Healthy Holiday. Enjoy your families. I will have my 2012 thought by the end of the day or over the weekend

Disclosures: Scott Redler is long SPY GOOG AAPL GS

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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