BALTIMORE ( Stockpickr) -- 2013 is starting off on the right foot, as stocks climb higher early in the first trading day of the new year. A lot of that buying pressure is coming from a fiscal cliff resolution that couldn't have come any sooner. In this case, the substance of the legislation matters a whole lot less than the fact that it got passed.
But for investors, there is at least some substance to pay attention to: Taxes on capital gains and dividends will remain at a discount for all taxpayers (while higher earners pay a higher rate). Of course, this isn't the last we'll hear from Capitol Hill. The debt ceiling remains unchanged by the fiscal cliff bill, which means that the politicking will rear its ugly head again -- and probably derail the stock market -- in a month or two.
In the meantime, this year's early trading is reason enough to break the noisemakers from Monday night back out. With evidence pointing to a significant rally at the start of this year, there's reason to think about buying stocks again.That's why we're taking a technical look at five trades that could help you profit from a January rally in stocks. For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. So, without further ado, let's take a look at five technical setups worth trading now.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV