What is in store for January?

The year 2009 begins on Thursday! I am anxious to see how we are going to end the year, I smell a rally to about SPY - 90 - 92. To go beyond that will take a lot more market participation and willingness for sellers to hold on much longer.

I still see the market moving sideways...perhaps saving for a grand event like year end Window Dressing or Obama inauguration.

But I foresee that, January could be a more volatile month with many companies reporting their earnings. So I wouldn't be going into big bets, I think it is better to wait for more conservative setups for more consistent profits.

The key things that I am watching out for are Gold, Crude Oil, Infrastructure stocks and Small Caps.

The market sentiment remains cautiously bullish amid some uncertainty during the holiday season. Obama is beginning his Presidency in mid January, so I see 3 possible scenarios developing:
1. Testing the lows and then rally.
2. Trading sideways and then rally.
3. Corporate earnings and other unforeseen events fade any optimism for an Obama rally.

Therefore, I shall continue to stick to my strategy of daytrading.

My watchlist:
GS, VIX, FSLR, IWM, AEM, NUE