Markets Rise on Volume as Santa Nears His Yearly Trek

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President Elect B. Obama’s rebuilding America takes hold as new leadership is starting to emerge.

Stocks gapped higher at the open and moved higher throughout the day with a hiccup at the close of the session. The market saw its second straight day of accumulation as fresh new money is coming from the sidelines and into stocks. Assisting the day’s gains was the news US automakers would be receiving government loans to prop their businesses up for a few more months. Traders were delighted to punch F higher by 24% and GM by 21%. Aside from the US automobile bailout new leadership is starting to take hold as Obama has laid out his plan to rebuild America. Many pundits are cautious about a rally, but I am in the camp that we’ll see a bear market rally going into next year.

This little bear market rally is quite premature but it has legs on the hopes Obama’s plan will ignite our economy. Regardless how you feel it will move stocks albeit for a short period of time but it will move them. The two industries are: Heavy Construction (Infrastructure spending) and Medical Information (Medical Records). Obama has laid out a massive spending spree on infrastructure and medical information/records. These industries will receive the lionshare of the funds needed to accomplish Obama’s vision. Here are the top 3 stocks in each group (please note this is not a buy list, merely an illustration do your own homework):

Infrastructure

GVA
URS
ACM

Medical Information

ATHN
SXCI
CPSI

Ultimately, this market will boil down to a Bear Market Rally. New highs continue to be dominated by New lows and there has been far too much damage to get a new bull market any time soon. Santa is bringing in a Bear Market Rally, enjoy it!

No Positions in the above mentioned stocks at time of publication.