DJIA 13009.68+172.79 (1.35%) NAS 2966.85+40.30 (1.38%) S&P 5001409.15+18.12 (1.30%)
10-yr Note-3/32 1.697

NYSEAdv 2438 Dec 476 Vol 328.9-M NAS Adv 1776 Dec 550 Vol 745.0-M

Industry Watch

Strong: Technology, Consumer Discretionary, Financials, Materials, Telecoms
Weak: Utilities

US equities began Friday’s short session on a Bullish bias. The sentiment was maintained into the close as the S&P 500 reached its high during the 1st hr of trade, and stayed near that area until the close.

The markets were not affected by headlines from overseas which indicated the Eurozone Summit has been postponed and will likely take place early next year.

Friday’s volume below-average, the S&P 500 rose 1.3% closing above the Key 1,400 mark.

Technology stocks led the broader market. Shares of Apple NASDAQ:AAPL 571.50, +9.80 added 1.7% as the stock climbs back up.

Semiconductor manufacturers outperformed and the PHLX Semiconductor index gained 1.8%. Among individual stocks which comprise the index, Taiwan Semiconductor NYSE:TSM 16.84, +0.58 advanced 3.6% after Taiwan’s finance minister called on the government to begin purchasing individual equities.

Looking at other out performers within the semiconductor average, Advanced Micro Devices (AMD 1.95, +0.08) and Lam Research NASDAQ:LRCX 35.34, +0.84 saw gains of 4.3% and 2.4%.

Research in Motion NASDAQ:RIMM 11.66, +1.40 rose 13.7% after National Bank Financial raised its estimates for Blackberry 10 sales. In addition, National Financial Bank raised the price target to 15 from 12 a share.

Utility stocks continued their recent slide. The space was the only decliner among S&P sectors as settled lower by 0.3%.
The biggest relative weakness was observed among electricity providers as Exelon NYSE:EXC 28.57, -0.28, Edison International NYSE:EIX 43.49, -0.33), and Southern Company NYSE:SO 42.03, -0.25 fell between 0.6% and 1.0%.

The extended weakness in utility stocks comes as investors prepare for the possibility of a dividend tax hike.
Plus, electricity providers are expected to face tougher regulation after Superstorm Sandy caused considerable damage to east coast infrastructure.

The Dow Jones Transportation Average advanced 1.1% and railroad stocks saw relative strength. Kansas City Southern NYSE:KSU 77.61, +1.28 gained 1.7% and Union Pacific NYSE:UNP 121.98, +1.94 advanced 1.6%.

Gold Market Bulls, the Trend is Your Friend
For Gold market Bulls of the Buy and Hold ilk, the monthly chart on nearby Comex Gold futures looks very good in here.
Gold prices have been in an strong up-trend for 11 yrs, since the Y 2001 low of 255 oz, basis nearby Comex futures.
No matter if you are a trader or investor, “the Trend is Your Friend.”
The longer-term price trend in Gold is up, and there are no technical clues suggesting the up-trend will end any time soon.
That being the case, the path of least resistance for Gold prices in the coming months likely will remain sideways to up.
I am looking for Gold futures prices push above 2,000.00 oz sometime in Y 2013. Stay tuned…


Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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