Santa Claus rally? Bah humbug…

Posted on Dec 26, 2017 by in Letters

http://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=0&mn=6&dy=0&id=p58348629240

Hello Rudolph.  We’re in a bull markeet.  Look at that wave.

Myth sellers were out busily selling the Santa Claus rally.  Why?  Because –because it always happens.  Maybe but what about what the chart says?

http://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=0&mn=6&dy=0&id=p47302812113

A month ago we warned that prices were going parabolic but then the steam was let off by some volatility and a few days down.  It strikes us that these occasional interludes of two or three days sell off are serving as letoff valves and keeping the market healthy.  (down wave subsstitutes as it were.) As for Santa Claus rallies we remind you of our constant zen mantra:  what does the chart show right now?

With the year ending it is time to make foolish forecasts and ring the jingle bells.  But not today… shortly.

Merry Christmas and a hapy New Year.

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