No Anxiety for Tech, Biotech

Retailers tend to outperform the market in the first two months of the year, he writes. In particular, consumer electronics companies are the best performing group post-holiday, after faring the worst during the holiday season. Hickey notes that Best Buy(BBY), Circuit City(CC) and RadioShack(RSH) finished the year at oversold levels amid negative sentiment. "The opportunity exists for at least a short-term rally in these names," he writes.

Outside of such pockets of opportunity, however, the market remains overbought, and traders are unsure what to expect from the economy, the Fed and corporate earnings. With December's payrolls on tap Friday morning, it seems like a setup for a letdown -- or at least more volatility.

>To order reprints of this article, click here: Reprints