Good Morning, Traders. The market giveth and the market taketh away. At least in the case of the Dow which caved a bit yesterday and gave back a good portion of Wednesday's advance. The Nasdaq Composite continued its 2-day relative strength winning streak, closing in the green, while the S&P shed 2.64 and the Dow got clipped by a very out of sync 65 points! Sheesh. The ShadowTrader Core Sector List was very split most of the day and even in a Christmas Tree formation into the close with strength in Gold, Coal, Software, and Oil Services tempered by weakness in Homebuilders, Banking and Retail. Breadth closed split as well with a positive reading on the Nasdaq and slightly negative on the NYSE. Overall a rather inside day as most of the days action was within Wednesday's range. Not much to report at this juncture, other than to stay the course. Strong stocks in strong sectors should be bought on pullbacks, or when breaking out to new 52-week or all-time highs. Near-term bias is sideways to up, with our overall bias bullish.

Peter Reznicek is the Chief Equity Strategist and a principal of the Prana Fund, a domestic hedge fund, and ShadowTrader, a subsidiary of thinkorswim which provides coaching and education to its clients on both intraday and swing trading of equities. For a free trial to the full version of The Big Picture or to learn about ShadowTrader's other services, visit shadowtrader.net or send an email to preznicek@shadowtrader.net.