Daniels Trading senior broker Scott Hoffman is bullish, noting that Cisco Systems Inc. had a “knock-out third quarter,” and because Cisco sells network infrastructure technologies, it acts as a bellwether for technology stocks, which are looking forward to their annual Santa Clause rally.
It is not just about Cisco though, Hoffman cites a potential reversal of Fed policy, the decline in energy prices and a technical breakout above resistance at 1750 as fueling the recent rally. He calls for a high of 1800 and a low of 1740 for December.
Larry Levin, trader and president of Secrets of Traders is also bullish, “You probably don’t want to be short these markets. It’s like stepping in front of a train.” Levin sees support in the December Nasdaq at 1760 and expects to test resistance at 1800.