In this holiday shortened week the markets have stayed pretty quiet so far and this is expected to continue. The S&P 500 (SPY ) finds itself just off all time highs and trading on very light volume. Assuming it stays here to wrap up the year, the SPY is on track to gain about 20% on the year.
The Nasdaq 100 (QQQ ) is trading very quiet, and just off all time highs as well. The tech heavy index has been slightly more volatile this year but for the bullish investor that was able to stick it out, it was well worth the reward. The QQQ, assuming prices remain around here, is due for over 30% in gains on the year.
Bonds (TLT ) have made many attempts at a rally in the second half of the year but with no real legs. The TLT has mad a run back to previous highs this week but still has another 2% to go in the last remaining days of the year if it wants to close at those highs. Some investors may think there is a chance as the TLT has pushed over 1.5% already this week.
After a post-tax reform beating the Mexico ETF (EWW ) is trying to recover some of those declines. Tuesday the EWW popped 1.25% in what can only be seen as a small, short covering rally. For now the EWW remains challenged and in a downtrend. The low volume makes the EWW even more vulnerable to the selling pressure of bulls exiting losing positions.
Finally, the Home builders (XHB ) popped to new highs this week as optimism continues. The XHB has seen over a 30% gain on the year. After the summer the XHB has accelerated its bullishness, pushing to new highs almost weekly. For now investors are optimistic about the space.