After the gap up to start the day, the indices didn't do anything, but big-cap technology acted well, and we even had a little momentum in the solar sector. A stronger dollar pressured the precious metals, but it didn't present too much of an obstacle for the bulls.
Volume slowed quite a bit as the day progressed, and there was a lot of drifting, but that is to be expected as the holiday break approaches. Thin volume isn't necessarily bad for trading. Things can move a lot faster, but that can cut either way.
In this sort of environment I tend to focus more on sectors and individual stocks. Traders will almost always find some hot action in thin holiday trading, and those can work very well. You have to keep a close watch on them, but they can work well. Solar energy had some of the best action today, and I'll be looking for some continuation there.
The biggest negative this market faces is complacency. The bulls are content that seasonality will hold us up into the end of the year, and there aren't any big worries right now. If the market does start to slip, a lot of folks will be caught out of position, and that can accelerate the slide. We should keep that in mind as we navigate over the next few days.....
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