Yesterday's session was a boring repeat of the previous day's action, except that stocks gapped slightly lower, rather than higher, on the open. Thereafter, the same trendless, low-volatility trading range dominated the rest of the day, causing stocks to again settle near unchanged levels. The Nasdaq Composite eked out a 0.1% gain, as both the S&P 500 and Dow Jones Industrial Average finished flat. The small-cap Russell 2000 rose less than 0.1% and the S&P Midcap 400 slipped 0.2%. Once again, as anticipated, there was really nothing going on.

Total volume in the NYSE was roughly on par with the previous day's level, while volume in the Nasdaq ticked 3% higher. Although turnover remained below average levels, the Nasdaq's nominal gain on slightly higher volume was positive. Next week, after the new year has begun, mutual funds, hedge funds, and other institutions should begin returning to the markets. When they do, volume will correspondingly rise, and we'll quickly find out whether or not the extremely light volume holiday gains are sustainable in the short-term. Until then, one might expect the last trading day of the year to be not much different than the preceding two days. Have a great, safe New Year's celebration this evening!

Holiday Publication Schedule: Today, December 31, only an abbreviated version of The Wagner Daily will be published, primarily updating subscribers of any changes to open positions. On Friday, January 1, the stock markets will be closed in observance of the New Year's Day holiday. As such, The Wagner Daily will not be published that day. Regular publication will resume on Monday, January 4. We at MTG sincerely wish you the best personal and business success in 2010.

Open ETF positions:

Long - SMH
Short (including inversely correlated "short ETFs") - EEV, FAZ

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.