Market Update 12/22/2022 (1+2+2+2+2+0+2+2) 12/22/2022 = Lucky 13!

 Not much to update, as trading remains pretty dull during the Hanukkah break, as expected, but I couldn't resist providing an update on a date, with so many 2s in it! 12/22/2022 (1+2+2+2+2+0+2+2) 12/22/2022  = Lucky 13! 

We're supposed to get socked with a snow storm in Chicago, today, and tomorrow, and I went out to do some last minute shopping, yesterday, and I can't remember ever seeing the stores so packed! There is no recession. 

 No recession means no bear market, and one chart proves it, The Russell 2000 (small caps) Index.

$RUT - If there was one place, where we would see a risk off environment, leading into a possible recession, this is where you would find it, but instead we've seen the opposite.  

Ever wonder why the #Russell2000 seems so resilient?
That's because this is a risk on environment. https://t.co/m60ORg0DSc

— Veteran Market Timer (@3Xtraders) December 21, 2022

#Stocks going to new highs in 2023? https://t.co/m60ORg0DSc

— Veteran Market Timer (@3Xtraders) December 21, 2022

To answer my own question: I think so!  

Let's analyze the above chart, and identify exactly what is going on here:

$RUT (IWM) - 3 year view 

1. Going back to 2020 - you can see where stocks gapped up, in an engineered short squeeze - as we headed into short covering season - just ahead of Thanksgiving (2020) - and that carried over all the way into the end of 2021, where you see a lot of bearish consolidation. 

2. Near the end we saw profit taking, and that continued into 2022, where we saw the gap that was left behind in 2020, fill. 

3. Ever since the gap fill we've seen bullish consolidation, as the lame stream media continues to report a lot of bearish stories. 

Funny stockcharts no longer allows you to chart the $RUT, but only the $IWM, but it is what it is - wave 4, as I've been saying all along. 

China  - up another 3% overnight. 

Looks like the Hang Seng pumpers want to test the 50 day ma again 

 $HSI - 50 day being tested... 

Stocks to watch: Apple 

Remember the lame stream media pointing to Apple, as if the sell-off in Apple was bearish sign of things to come? Well, that was the setup....

$AAPL breaks out. Trades into a bull flag on the 15 min. chart. 

Notice how 99% of the reporting coming out of the lame stream media is bearish? That's funny, because the bears only make up like 10% of traders, at any given time. Like I said, that's the setup. 

The Santa Claus Rally is still on, as I covered in the last update - you can review the targets there! 

Good Luck in 2023, 

AA 

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