Wishing You All The Best 12-23-05

Yesterday we mentioned that large institutional players would not be partaking in today's market festivities. A more true statement could not have been made. Volume was pathetically low even for "Thin Friday". Breadth however, was good stemming from pockets of strength in the Small Cap sector. All in all, we were pleased to see that our prediction of Small Cap strength came to pass. Despite the low volume and the paltry 3 point gain in the NASDAQ, the brand new uptrend is still in play. Therefore, it is quite possible for more serious momentum to kick in next week.

Always remember how cruel the market is and how it enjoys wearing out the patience of most everyone. The cruelest thing the market can do at this point in time would be to completely convince traders that Santa Claus is dead by offering a little shakeout sometime next week before reversing hard to the upside leaving Reindeer in the headlights.

If You Held a Taser To Our Head:
The fact that Small Cap action provided leadership today bodes well for a continuation and some spillover into the Large Caps next week. NASDAQ 2254 provides immediate resistance which is likely to be overcome. More significant resistance lies around the highs of the year at NASDAQ 2278. Don't be surprised if the market reaches for that level late in the week as everyone completes the grieving process over Santa's demise.

We hope all of our readers enjoy their respective Holidays and for those who don't celebrate at this time of the year, we hope you enjoy your time off.

See you Tuesday!

___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (“KTB”) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (“KCAP”) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firm’s principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________

Click Here To E-mail Comments