Yesterday, I thought today we'd see a fairly sedate day with perhaps some small losses. I was quite pleased to be wrong, with an additional 107 points piled on top of yesterday's monster 250 point jump in the Dow to close at 11,362. (In my defense, don't forget I did say I had my long hat on). Anyway, with today's action lying entirely above the critical 11,200 level, I can finally take down the channeling icon that's been up for two weeks now and replace it with a green arrow. Today's action makes me believe we're headed back to the highs of early last month at 11,450 and the upper Bollinger band, standing today at 11,497. Possible headwinds for tomorrow include that the ES futures are already at those early November resistance levels. But overall, I think the swing trend is now positive.
In retrospect, I should have been more bullish on today. While the first day of December is historically bullish, so are the second and third days. I don't know if we'll see any follow through tomorrow, but we're definitely out of that 11,000 - 11,200 channel and the break to the upside definitely bodes well for stocks, coming as it does at this time of year. The VIX meanwhile is down big time from where I called it lower two days ago, and I think it's not done yet, meaning there's more room to run for stocks.
Today I spent a while kicking myself for dumping OMEX, which bobbed to the surface to close at 2.09, higher than anywhere I was holding it. Then I kicked myself some more over GMR, which went nowhere since I bought it yesterday. Then I bought some GE preferred (GE/PA for you eSignal subscribers) at 26.36, which has been beaten down lately and is looking quite oversold. It yields a most attractive 7% and I think has a lot of room for appreciation.
Meantime, my low price/high yield portfolio (see my special post on that) has hit its highest level since I bought in last summer. I've got about an 8% gain on a basket that's yielding over 10%. Not too shabby.