Securities Research Services

Tuesday, December 09, 2008

Base Breakout

The market formed a base after trading in a range over the past 6 or so weeks. On Friday buyers bought the bad employment report and on Monday stocks broke out of the base.

All this is quite bullish for the intermediate term outlook. Nevertheless, volatility remains at historic highs so chasing prices is not advisable. At best this provides the all clear sign to buy the dips as long as position sizes are kept low and stops are used.

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