Green Light Until Year End

It looks like many of the leaders have either bottomed and are  either in continuation patterns or broken out to new highs.

The Rebublican victories in the "off off" year elections have chasenned the Pelosi Reid spend our future away healthcare hawks. Also, the forecast from CSCO helped. In addition, the Fed has signalled that they will not be raising rates for quite some time.

So with the October mutual fund calendar year tax selling done, we may be headed into year end seasonal strength.  This is not to say that we have started the next leg up for the averages - that can only be stated when the averages take out the October highs.

Rather, I am saying that we hit a short term bottom and individual stocks will be in play.  I would prefer to see  the averages build more of a base before the next leg up begins.  So lets call this a year end trading rally for nimble traders.

We have had our 5% correction and my gut is that the bottom will hold through year end. That means that traders can play the breakouts in stocks like MELI or SLH.