The “risk-on” trade seems to be hanging tough as more than a passing fad. Risk-off means that money is flowing into safe havens like U.S. Treasuries and solid currencies like the U.S. dollar and Swiss franc; whereas risk-on means that money is flowing into more speculative assets like equities, commodities, emerging markets, and higher yielding currencies.

Stocks are maintaining their bullish sentiment for the New Year. The proverbial “wall of worry” remains high and intimidating, but bulls traditionally prefer it this way. It makes the less optimistic investors keep a store of cash, and it keeps the bears pumping money into short positions—both of which can provide fresh fuel for stocks when idle cash gets put to work and the bears start covering their shorts.

After closing 2011 at exactly the same level it closed out 2010, the S&P 500 came blasting out of the gate with guns a-blazing on Tuesday to celebrate the New Year. It was a welcome sight to scores of nervous investors.

Bulls are trying mightily to ensure the Santa rally holds into year-end and close the year in the positive, as all eyes remain on Europe.

Bah! Humbug!

By David Brown, Chief Market Strategist, Sabrient Systems

The usual suspects of Materials, Industrials, Financials and Energy continue to lead this unstable market both up and down. Technology has been less volatile, and in fact it has been tracking closely with Healthcare lately. These two also happen to rank the highest this week in Sabrient’s SectorCast ETF rankings.

On a Wing and a Prayer

By David Brown, Chief Market Strategist, Sabrient Systems

Market, Market on the Wall, Who is the Fairest of the All?

By David Brown, Chief Market Strategist, Sabrient Systems

After the market gained in 7 of the 8 trading days following August 19, we have been met with 3 consecutive down days wiping out about half of our gain (about 5% at today’s close).

Searching for Support

By David Brown, Chief Market Strategist, Sabrient Systems