Well, the weather outside might be frightful (in the Southwest anyway), but over the roaring kivas, I could see Santa carrying a sack full of stocks as the week ended!
But he certainly carried with him that list of which companies were naughty and which were nice.
Santa loved solars last week-a sector/group I have been watching for months. He gave the nod to green energy apparently as there are several instruments that have already shown great basing while the ETF TAN looks promising.
His dimples were merry as he filled STOCKings with Tesla cars as well. Furthermore, as Santa turned with a jerk, China gapped higher and closed near the 2014 highs.
He was a right jolly old elf, taking out of his pack, gold, GPRO gadgets, iPhones and 3D printers. Then he handed out Mastercards and Amazon Prime! His round little belly that shook when he laughed, was filled with Panera, Buffalo Wild Wings and Kraft!
Yet, as he laid a finger aside his nose, and before he nodded and up the chimney he rose, not all were merry. Santa kept oil and gas on that naughty list big time. Nor did he drinkcoffee with those cookies that were left out for him. He didn’t seem too concerned abouthealthcare either.
This week, with Santa now gone for another year, auld lang syne sets in. Will old acquaintance be forgot? The signs point up and when volume returns after the New Year, the market could rocket higher. I will say this, at a Boxing Day brunch we attended on Friday, everyone wanted to talk to us about the market. All seemed incredulous or at the very least baffled to this current rally. All loved lower oil prices.
I can surmise that the oil remains key-now better if stays cheap. Interest rates can firm but not too quickly. And of course, my favorite-the Russell 2000s-so much of the US economic meat and potatoes live there. With Friday’s high so close but yet not enough to take out 120.97 the 2014 high-we have 3 excellent places to focus for clues.
S&P 500 (SPY) 208.47 was the high, now its 208.85 with a close on new highsSubscribers: Positive pivots in all
Russell 2000 (IWM) Couldn’t meet the 2014 highs of 120.97 with Friday high 120.83. However, unless it breaks under 117, see any dip still good buy zone
Dow (DIA) Last 3 days of price action could be a yet another launch pad unless it breaks 176
Nasdaq (QQQ) Unless this gaps below 103.10 and continues to fail from there, has to clear 106 now for sure
XLF (Financials) 24.50 support and has to clear 25.08 after 2 Inside days
KRE (Regional Banks) Love it over 41.00
SMH (Semiconductors) Lagging behind so for now, not the place to be unless you want short setups if the market drops
IYT (Transportation) Cleared resistance-has more to go
IBB (Biotechnology) The bigger they are, the harder they fall, the better they bounce
XRT (Retail) Tried to make new highs and sold off some near end of day-tired perhaps but not destroyed
IYR (Real Estate) Unless it breaks 77, mostly noise
ITB (US Home Construction) Nice looking chart and looks good for 2015-but for now, would stay aside
GLD (Gold Trust) Popped up again and does seem a bit confused as to what it wants to do from here
USO (US Oil Fund) 21.94 the real point to clear otherwise still heavy
XLE (Energy) The 50 DMA is resistance point 82.86
TAN (Guggenheim Solar Energy) Subscribers: That 50 DMA is what I am waiting for
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs rebound some on Friday-125.50 now resistance
UUP (Dollar Bull) Consolidating at new highs
CORN (Corn) Subscribers: Looks like its bottoming out
BAL (Cotton) Subscribers: Cleared the 50 DMA for an confirmed phase change to recovery-see if it sticks around 41.52
