The broader averages all ended on the positive side Friday. Last week, the market showed it was still in a consolidation phase after the 6-week rally. This may be the pattern for the remainder of the year as it seems the institutions have completed most of their window dressing and have called it a year. Going forward for the remainer of the year, I anticipate a choppy sideways market with no major moves.

Trident Microsystems (TRID) has enjoyed a steep rally since mid-November on healthy volume. The last few days have seen a rest in the action. I’m anticipating another push to multi-year highs. Another reason that I feel strongly is that the industry, semiconductors, has been a favorite for institutions over the last month.

Trident Microsystems

As the end of the year approaches and volume begins to dry up, traders become more of a factor in the direction of the market. So we may see a very choppy market. Using your stop orders is even more important now. Remember protect your profits and principle.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.