In a reversal from Tuesday, the markets rallied early on yesterday then faded into the close, but managed to stay above the unchanged line.
Still, we closed higher, which keeps the S&P; on track for its best December since 2003. Volume was extremely light, and trading activity was a notch lower than is usual between Christmas and New Year due to the East Coast blizzard.
Energy was the driver of the day as it is assumed that global economies in general will remain on a growth path in 2011. Additionally, the OPECers have been hinting that they have no problem at this time with crude oil hitting the $100/barrel level.
Somewhat of a pleasant surprise was the sudden up move of several country ETFs we have positions in. As I posted before, since the Fed’s Quantities Easing program was enacted in early November, most of these funds had stalled and drifted off their highs, but without actually triggering their trailing sell stops.
Maybe there is more upside potential in the emerging world after all. I am sure we’ll find out more as 2011 gets underway.