The Technical View: Time to go Shopping
The Christmas spirit is over and yet consumers have another reason to shop till they drop. Apart from unemployment improving which brings income to households, the persistent fall in oil prices gives an extra boost to consumers’ disposable income. According to a recent report by Morgan Stanley “a 15 percent move in gasoline prices is worth $60 billion at an annual rate in consumer spending power, which is nearly 0.5 percent of disposable personal income”. Read more
Everybody knows that in order to have a smooth ride on the road you need to have your car wheels checked often. 
The ability for investors to take out their smartphones, check the equity markets, and see volatility day by day, hour by hour, minute by minute, and second by second, results in one undisputed reaction: emotion. If markets go down they have to sell, if markets go up they have to buy. Many investors let the media drive their investment decisions ignoring their investment horizon and, most importantly, their long-term financial goals. 
Although many would disagree with the above expression, size does indeed matter when it comes to many things, including stocks. Whether choosing small caps, large caps or mega caps, investors will need to know when it’s time to switch and be on the right side of the trade. 
“The most bullish thing a market can do is get overbought and stay that way.” So said Alan Shaw, the legendary former head of technical analysis at Smith Barney. While health care stocks have been overbought for some time now, their uptrend continues to impress without signs of exhaustion. 