Is the Santa Clause Rally Coming?

THE WEEK

Last week I predicted the Market would steadily climb through the end of 2024 and the Santa Claus rally.  That is what happen but now I am adding a cautionary note.  The Price Action is approaching the 52-week high which is a natural reversal area.

If there is enough buyers to push through the 52-week high, I think my prediction has a good chance of being true.  Even if it doesn’t punch through and pulls back a little, I believe it will sail though shortly thereafter.

We are not seeing the impact from the economic reports that we had seen for the past four years.  Case in point the PMI report on Friday at 9:45am Eastern and barely cause a ripple in the Market

LOOKING AHEAD

This is Thanksgiving week – a time for friends, family and some travel.  The Market is closed on Thursday and is only open until 1pm Eastern on Friday.  The trading volume will most probably be light with Friday having only a fraction of the normal volume.  A note of caution – the FOMC releases their meeting minutes on Tuesday at 2:00pm Eastern and the Core PCI for October reports on Wednesday at 2:00pm Eastern.  I don’t expect much reaction from either report.  Rather, I expect the Price/Action to be flat all week with less traders placing trades.

HOW AM I DOING?

I had one bad trade that caused my gains for the week to be a lot less than normal.  I set alerts on my phone to catch unexpected movements either up or down.  Unfortunately, I was in a meeting with my phone turned off when the priced dropped suddenly on my position.  It happens and is all part of the trading game.

There will be no webinar this Thursday

Thanksgiving is my time to reflect on what I am grateful for – the list is long!

Have a wonderful holiday with your friends and family

And try not to overeat too much!