The Stock Trader's Almanac

[frenchee]

All the major market indexes lost ground this week. As a result, the market failed its first test of the year which holds that market direction during the year's first week often determines the direction for the rest of the year. A more important test is the market's direction for the whole month of January. The lack of upside volume earlier in the week was an early warning that last Friday's upside breakout was suspect. I reduced risk today by clearing the deck relative to my SPY, VXF, AGG, and EFA investments. Only longs now are MCD, PHO, and SRS.