Welcome 2011

And welcome back to my blog. If you were wondering why I didn't post in the last two weeks of December it is because the market was simply too boring to participate in. As you saw, the market traded in a very small average daily range on very low volume. There was one piece of eventful news last week when China announced that it raised interest rates a quarter of one percent. This had little effect on the markets as most traders were on holiday, although we did see a small and brief sell-off to open trading on Dec. 27th in reaction to the news.

But here we are beginning 2011 at new highs in both the Dow and S&P 500 Futures. I continue to await a correction in the markets though there are not yet any signs the short-term top is in. We will continue to scalp the market until we get a solid signal the correction has begun. It can begin at any time as we are trading into note-worthy resistance levels dating back to the lows of 2008. I won't be surprised to see continued momentum to the upside to begin January. It is similar to last year when the market was making new highs in December and higher highs into January. I'll continue to post it as I see it.

Items that I will be looking to focus on in 2011 are a further look at how Quantitative Easing (as well as the bond market and the budget deficit) will continue to affect the markets, Inflation, Gold (and the rest of the commodity markets), China and the devaluation of Fiat (paper) currencies around the world...

Best in the New Year, look forward to blogging, trading and above all else, living...