| | |

We Enter Last Week of the Year

Expect volume to continue to be light as we head into the new year. But except for those areas we have been telling you to avoid, all is well.

In fact, major indices are sitting tight after the recent move up.  This tells you that so far, even with the move up, sellers refuse to take the lead. And frankly, all it would take is one good day to again take things topside.

Watch the financials. They continue to lead the way. It was this group that broke out on November 9 on heavy volume…which indicated the confidence in the president-elect. Frankly, we are amazed and stunned at how strong they are. A quick glance at Goldman (GS) shows a rare second flag being put in. A break above $245 and away we go again. The XLF and KRE are also doing the same.

We would continue to avoid a bunch of areas. We have highlighted these areas for you many times…including the bond market, utilities, reits, consumer staples like food,beverage and the like, big growth names like Facebook,Amazon and others as they continue to show no relative strength.  We will need to see a move above the 50 day before looking at. Lastly, a bunch of big retail broke down in the past week and would avoid. Big retail has lagged this move since day one.

We are traveling but will continue to update you this week. We want to wish everyone the happiest and healthiest holiday and new year.

One Comment

  1. Blab blab blab…..

    The market :
    It’s eoq ( end of quarter).
    It’s Christmas rally season.
    It’s the dollar ( shekel ).

    I’d really rather doubt that anything will happen until after start of January.
    I could go home, eat half a chocolate cake, and watch cartoons…

    x

    Question dear Yoda, , lead us !
    After January, where will the market go ? … !

    A: Yoda, it’s Jew poop.:
    The market goes up when the Jew banker poops, the market goes down when the Jew banker sucks the shekel turds back in.

    Where will the market go ?

    Yoda:
    Yoda will answer the question with a question.
    Where the market will go; is up to the Jew..will he poop the shekels out and drive the market ever higher, , or will he suck the shekels back in , and drag the market back down.?

    Dunno, the answer is beyond the scope of the force, I’d suspect we will have a pull back in early January, then after the fall, the banks will either suck it in, they will panic, and poop it right back up., .

Comments are closed.