Wednesday, January 03, 2007

The SatRad Trader: The New Year

Here are the forces in play on the first trading day of 2007;

Tax loss selling is over: Window of opportunity to lock in losses to cover 2006 gains is closed; this should relieve selling pressure

Short covering profit deferral: Traders can cover short selling profits made in 2006. Buying pressure should build as investors begin to close positions as tax on profits are deferred into 2007.

Positive news from Sirius: Announces more than 6 million subscribers at year end and 1st quarter of CFBE.

Two major trades shows in January: CES and Detroit Auto Show; Major announcements expected