Things to look for between now and 1/10/06

The current market outperformers are XLE and HUI. This is stating the obvious as of 1/1/06, XLE/HUI will go up or go down: either this year's momentum will continue to push the leaders higher into 3/06 as portfolio managers reallocate to xle/HUI (see NWX 1/00 or XLE 1/05) or there will be a reallocation away from XLE/HUI to ______.

In the meantime, should this week's low hold until 1/1/06, look for blow-off movements in the mo-mo stocks (see QCOM 12/99, TASR 12/03, ANTP 12/04). There is no way to predict which stocks will get bid-up, especially among the smaller float stocks. Candidates include: HANS, BOOM, ISRG, NTRI, TRLG, AAPL, GOOG. One play....set trigger orders above recent highs, hold on and know when to walk away.