Markets finished close to UNCH Monday as both the Nasdaq and S&P 500 traded within very narrow ranges, with many looking ahead to 2014. The tight trade has to be respected because light volume can contribute to volatility as well. The S&P 500 has 3 consecutive closes within 2 handles of each other. Remarkably tight. Lets see if the benchmarks will pull the same 1-2 punch they did last New Years Eve and New Years Day. The Nasdaq for example rose 2% on 12/31, then another 3% on the first session of 2013 1/2. Some important groups are starting to make a stand, which is important, because rotation does demonstrate health and vitality to the rally. A group that caught my eye this weekend was the software group which earlier in the year was considered a leadership group. That status has since been eliminated, but recent moves in names like SAP CRM RHT ADBE ORCL SNPS VRNT should have you ready to put the sector on your long radar. Old dog ORCL even flexed its muscles with an acquisition of MKTG. So it looks like insiders and investors alike are beginning to see value. Specific metals are starting to show some luster, as copper names like FCX RIO SCCO show some recent accumulation. Both FCX and RIO are near buy points. FCX is just below a 38.10 cup base pivot point. RIO is approaching highs last seen in mid February. It is sporting a 59.00 cup base which is deep, but took its time doing so in a gradual, smart fashion.
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