For the second year, we are publishing our "Baker's Dozen" Top Stocks for the coming year, selected by our powerful FSYS system.

Here are five stocks from the 2010 report:  JRCC, JOYG, CACC, HUM, STEC.

It seems that we needed only to take a week off to get this market going.  Our last issue was barely published when the market broke through the 1100 heavy resistance it had faced for nearly two months.  The S&P 500 closed today (Monday) at 1133, up a solid 3% since two weeks ago.  Small-cap Growth led the cap/styles this past week, up +1.66% while Large-cap Value was the worst at +0.32%.

The Claymore/Sabrient Insider ETF (NFO) racks up another accolade, this one from Michael Johnston at ETFdb.com.  He talks about the expansion of ETFs from a "closet industry" five years ago to an investment option for mainstream investors and about the growing number of quant-based funds:

As the stock market continues to trade at 15-month highs, Sabrient’s SectorCast-ETF model is getting even more defensive, even though we are in a historically bullish time of year. The fundamentals-based quantitative model has a GARP (growth at reasonable price) focus, and this week there are significant changes to the sector rankings.

There are five bullish signs coming out of corporate suites that indicate we're headed out of the recession and into a sustained recovery, according to Samuel Fromartz of Fidelity.  The signs include insider buying, and Mr. Fromartz points to the Claymore/Sabrient Insider ETF (NFO) as evidence, mentioning that NFO has risen 105% since the market low in March.   Read the entire article here.

Just a quick update while I'm on vacation this week.

Last week the market (S&P 500) battled resistance at the 1100 mark as if it were in the yawning sand trap at #14 on Pebble Beach – and Tiger Woods can't help us out just now.

I’ve been reading prominent market pundits predicting everything from the “Crash of 2010 coming” to “Major surge ahead.” With such divergence of predictions, it seems like a good time to remain conservatively long/short in accordance with Sabrient’s SectorCast-ETF value-oriented model.

It was yet another week of hanging around the1100 mark with the S&P500. It's not that there weren't important developments during the week. The trade deficit narrowed much more than expected, and retail sales got a substantial boost in November. Retailers alone sold $314.1 billion of goods, 1.4% more than in October and 2.2% more than a year earlier.