Get ready for a Christmas rally: Trader
Equities are the gift that keeps on giving. The one problem with the market right now? You never feel that you are long enough!
Just take a look at the December S&P e-mini, it has tested above and held the next pivot level of 1,785, as it stretches toward 1,800. The Friday morning low is 1,786.50, as the market keeps climbing and enjoying higher highs.
(Read more: The deceptively simple reason stocks won't quit)
Investors have all the assurance that they can hope for that there will not be any trimming of bond purchases by the Federal Reserve next month. What does this mean? It is still game on, and investors should buy equities that they expect to perform well over a Christmas rally.
Major support now comes in at 1,774.50 to 1,776, and a close below here will likely signal a consolidation to 1,757. With the 20-day moving average climbing to 1,760.50, traders will be using a close below here (and below the 1,757 level) as a signal that short-term bullish momentum is running out. What is amazing is that at this level, we would be looking at nearly a 2 percent correction from the highs.
(Read more: You're wrong—QE has not boosted stocks: McKinsey)
But as the market hits fresh all-time highs on a daily basis, there's only one way to trade: Tune out the noise, and use the technicals to make money.