My over all outlook after the fiscal cliff decision and the gap up is bullish. We need to hold price action of the major stock indexes in the range that has developed over the past three trading days after the gap. The gap is bullish and I am not a big believer in an immediate gap fill. This gap could stay open for quite awhile as we build a base at these price levels. However it is time to find the stocks that are trending up out of bases and avoid under performers. I use the 5 day ema as my guide, and currently Apple is in a little short term downtrend as Google is at the very beginning of a little short term up trend. I am currently short Apple with puts and long Google with calls, I will have to see how they play out over the coming week and use the 5 day ema as my guide. . For the first time in a long time I moved my larger tax differed investment accounts into a S & P 500 mutual fund with the strong up move after the fiscal cliff deal. . I will have to take it one day at a time but green lights are starting to light up for bulls.
