Today gave us almost a carbon copy of yesterday, another doji day with a tiny 4 point gain in the Dow. The outlook for tomorrow is unclear. We're still riding the top of the RTC which places us a long way from any bearish signals and tomorrow is Friday. The last Friday in January is historically a good one. We took a second stab at the 12,000 level today and I expect another one tomorrow, although I still don't think tomorrow is the day we close above 12K. Given that all three futures are in the red at the moment (2:25 AM) with ES leading the way lower with a 0.21% decline, it's not looking like we're in for a big up day tomorrow.
Also note that we closed right on the daily pivot today - 11,989. A lot depends on which way we fall off this fence in early action tomorrow morning. A lower open could lead to a lower close, and vice-versa. Watch that number. I plan on skipping the early action as I always do.
No trades today. My new low price/high yield portfolio members, ZTR and ARR basically went nowhere today, which isn't a bad thing. I'm holding them primarily for their yield. That said, the LP/HY basket has done exceedingly well since I started it last summer, providing a 16% return on top of the dividends generated. Every member of this basket is up since I bought them.
Here comes the blow-off!
15 hours ago