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Monday, December 19, 2022

Market Update 12/19/22 - Santa Claus Rally

This morning I added to Friday's Update, and totally debunked Carter Worth's bearish analysis. I just wanted to be sure, I wasn't missing something. CNBC has a bearish story to sell, to their overwhelmingly bearish - paying - audience, and I'm not buying any of it! 

Santa Claus Rally

If you caught the News Letter I sent out over the weekend, then you know I calling for a, "face melting, Santa Claus Rally", going into the New Year. I pointed to the pattern I identified on the DOW chart as a broadening top pattern

$INDU - watch for a continued pullback to the 200 day moving average, at the 32,455 level. From there, we should be clear for lift off.  

So, which sector is going to lift the DOW? None other than the most hated sector in the universe, and that would be Big Tech. 

$COMPQ - NASDAQ Perhaps consolidation continues (lower) ahead of next week.  



Oil

I'm also seeing a broadening pattern on Oil, which tested the lower end of the pattern on Friday. 

$USO (Oil) - Going higher 


Of course Money Managers are going to be forcesd to chase the gains in Energy, we saw in 2022. 

$CRAK - Energy ETF 


Needless to say, I'm bullish, after last week's heavy selling volume, ended on a lower $VIX. 

Have a Merry Christmas,  a Happy Hanukkah, and a Happy New Year! 

AA  

 



 

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