Market Trends

The Dow Jones Industrial Average hit another high this morning straight out of the gate of 12,247.22 (and still counting).

In fact, everything is up this morning, except the Philadelphia Gold & Silver Sector (XAU:AMEX).

In other interesting news regarding the retail industry, Wal-Mart Stores Inc. (WMT:NYSE) and Target Corp. (TGT:NYSE) are brewing up price wars on toys and electronics (among other consumer goods) for the holiday season.

Even though WMT says it's going to have the most competitive pricing in ever on the books for the end of year, the company also stated that it may miss its fourth-quarter earnings due to the drop in prices.

The Retail Service HOLDRs (RTH:AMEX) is up slightly today, albeit above a bearish 50-day over 10-day Moving Average crossover, accompanied by falling Money Flow and rising RSI.

As I stated in this Monday's “Chart of the Day” special alert, these kind of signals indicate weakness in the RTH going through the holiday season, until earnings are announced in early 2007.

Trading Tactics:

My ticker is nothing but green this morning, as new 52-week highs are being registered on the Dow, NDX, OEX, DIA, QQQ, SPX, RUT, and SPY.

This tremendous upside has been great for WaveStrength Traders, as we took a 30% gain on our New York Times Company (NYT:NYSE) calls followed by a 16% gain on our DIA calls just this morning.

With the Fed minutes being released today, we chose to take the conservative route and lock in our gains.

After all, we don't want the Fed impacting our profits!

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