SmarTrend Statistics for January 4, 2010

Happy New Year! Last week the total number of Uptrends, as a percentage of all trends, reached 72.5%, up from 69.6% a week earlier. This is the highest since last October and consistent with our thesis, as noted in the Morning Call newsletter, of a continued Uptrend for the broader market. The average return of a Uptrend did tick lower while the average Downtrend return improved which indicates the importance of stock selection in the upcoming year as stocks become less correlated. This increases the importance of watching individual stocks and sectors for changes in trend so please be sure to add stocks you are interested in onto your Watchlist for any changes in trend. This market will be less forgiving to underperforming stocks while rewarding more successful ones. As always, be sure to check the Morning Call for any updates on our view of the general market which will still impact most stocks over the short run.