Thursday, December 31, 2009

Happy New Year

The year-end selling I've been writing so much about lately really kicked in during the last 40 minutes of trading. As I've written previously, I think it is primarily a function of folks just cleaning out their portfolios so they can start the new year fresh. Most of the window dressing is done a few days before the end of the year, and that leaves some sellers who want to go flat. I don't believe we should be reading anything significant into it, especially, with volume so light.

The first few days of the new year can also be rather tricky, as positions are reestablished and new money flows in. We have had some sharp selloffs in early January in the past, but typically, it is a positive time, as everyone tries to start the new year with some quick gains.

Once again, I want to wish everyone the best in the new year.

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