High Flying Stocks Are Vulnerable to Profit Taking
POSTED BY PETE STOLCERS ON DECEMBER 26
Posted 9:00 AM ET – This is historically one of the slowest trading weeks of the year. The news is light and seasonal strength should keep a bid to the market.
I expect to see a little profit-taking next week. Stocks that have rallied the most (tech) will be vulnerable.
Democrats and Republicans will negotiate the debt ceiling/budget in January and the process will get ugly. This will keep a lid on the rally.
Swing traders need to wait patiently on the sidelines. Any dip will present a buying opportunity once support is established.
Day traders should also keep their activity to a minimum. Intraday ranges will collapse and volume will be light.
Tech stocks seem soft this morning and we could see some rotation into other sectors (financials and energy).
Take some time off this week and rest up for a busy January.
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