Stock Market follows through on Friday Rally

The stock market followed through on Friday's rally today as Congress sent an automaker bail-out bill to the White House and President-Elect Obama outlined his economic stimulus package. Stocks and commodities appeared to like the news as nearly every commodity showed strength today. Among the top performing groups today were telecom, some tech, real estate and commodity based groups. I've also noticed some strength in home health care stocks, which are among the top performers of the year.

For the stock market, Tuesdays often bring a reversal of the previous trading day, or the previous couple of trading days. Today, the price range in the Stock Index Futures was fairly narrow, and they made multi-week highs for the first time in a while. With that in mind, these markets may be ripe for some good intraday shorting opportunities for day traders. If you have a good day trading methodology, consider that the bias for Tuesday's trading will be to the downside, based upon the price pattern on the daily charts. This will be confirmed on early day weakness and weak tape indicators.

The biggest price change of the day was in MELI. This was a classic opening range breakout trade that carried the stock in an upward trend all day. You can see the intraday chart of this stock below.

Scott Cole