Range Bound

Last night I called the market higher today and that's just what we got, with a 150 point jump in the Dow closing near session highs and right up to the top of the horizontal channel established seven days ago (blue horizontal lines in the chart).

Looking ahead to Friday, historically that day, the day after Thanksgiving, tends to do well too. However, we are now at the top of the recent trading range. I doubt that the Dow will be able to break the 11,200 level on the holiday shortened session Friday. I went back five years and note that in the years where the Dow was up the day after Thanksgiving, it had had room to run in that direction as part of a longer trend. In years where the day before closes near the top of a range, it's less likely to see an advance on the following day.

All the big money movers will be on vacation and either way I'm not expecting much out of that day. If the Europeans can stay out of bankruptcy for one more day and if the North Koreans can manage to act like civilized human beings for a while, things should be fairly quiet on Wall St. I myself plan on watching the markets but I doubt I'll do any trading. For now, we remain in channeling mode.

And I made no trades today either. I will just note that my OMEX spec play spent a few days bobbing around the ocean aimlessly before giving me a nice 9.63% pop today; I'll let it run. And GM (which I also talked about at its debut last week), though posting a 23 cent gain today, still put in another red candle in the wake of its overpriced, over-issued, and over-hyped IPO. I'm looking for it to go lower still. And seven of my eight LP/HY stocks were higher today, with one unchanged.