Bulls have regained their footing and recruited some reinforcements, as the S&P 500 on Wednesday powered right through its 5.5-year intraday high of 1576 on increased trading volume to set a new record of 1589. Read more about Sector Detector: Bulls reclaim their mojo as Healthcare leads

I was watching the ABC World News the other evening, and I was struck by the commercials they ran. The target demographic is obviously an older crowd (and since I was watching, I guess that includes me). Advertised products within the short 30-minute newscast addressed a variety of age-related ailments like low-T, erectile dysfunction, overactive bladder, constipation, hemorrhoids, and loose dentures. Read more about Sector Detector: Healthcare sector leads a strong market forward

After a bullish performance last week, the market began the day a little off but managed to fight its way into increases across the major indices with S&P 500 closing at 1556, just 9 points shy of its record closing high in 2007. Read more about What the Market Wants: Market Trying to Go Higher

Last week, the Dow and S&P 500 large caps hit five-year highs, the Russell 2000 small caps and the S&P 400 mid-caps made all-time highs, and the Nasdaq recorded a 12-year closing high. But some investors are evidently showing concern that it has all come too far too fast. Read more about Sector Detector: Bulls seek new blood to boost conviction

Regardless of what I say, the market clearly wants a plan from the President and Congress so that sequestration can be avoided on March 1, 18 days from now.

Our forward-looking SectorCast predicts things won’t go well—for the first time in the history of the model, the top three sectors, Consumer Cyclicals, Non-Cyclicals, and Technology, are all flight-to-safety. Last week, the market eked out a slight gain. While all style/caps were positive, only two sectors were positive on a cap-weighted basis: Consumer Cyclicals and Technology. The rest were mostly marginally negative. Read more about What the Market Wants: New Twist on Flight to Safety

Stocks have been on a one-way train all month long. Now, as we approach Groundhog Day, the market appears to be having its own version of it as the Dow faces 14,000 and the S&P 500 struggles at 1500. As investors peer out above these levels, will they collectively see their shadow and retreat to safety for the next six weeks? Or will they bravely march forward into the clear blue skies to challenge the all-time highs from 2007? Read more about Sector Detector: Stock market having its own Groundhog Day

First and foremost, Happy Holidays to all!

While we wait to see if Washington is going to bring us Christmas cheer or Scrooge 2012 (beware of the 3^rd visitor which foreshadows the future), it is a good time of year to review the Dark Horse Traders’ Hedge portfolio.  I have one option trade to recommend and two positions that I would recommend taking gains on in 2012 and replacing with new positions. Read more about Dark Horse Traders' Hedge: It's Been a Long Way Down For Apple

Given the market’s performance over the last month, we feel that investors should consider reducing the more speculative portions of their portfolio. Read more about What the Market Wants: Fly to Safety (and not on American Airlines)

A weekend of more election surprises in Europe, as a socialist candidate won a key state vote in Germany, threatening Prime Minister Angela Merkel‘s stance on austerity in the Eurozone. The Greek “leadership” has all but abandoned hope of forming a new elected government, likely requiring yet another vote. Read more about What the Market Wants: Six weeks, One Day...and Still Counting