Ian Woodward's Investing Blog

Stock Market: Wall Street Says Thanks

Uncle Helicopter Ben and his crew came up with their perfect Tapering Scenario as far as the Big Guns at Wall Street were concerned and in turn said Thank You on his way out next year.  This seems to have solidified the Santa Claus Rally as witnessed by the several charts I have put together as my Christmas Present to you.

Ben Picture

Here is the proof that the Market Indexes are all trotting back into New High Territory:

Ben Indexes

Even the sluggish Canaries are perking up, and have posted good gains in two months of over 40% for FB, NFLX & AMZN:

Ben Canaries

The Acc vs. Dist Ratio A+B  to D+E has shown strength these last three days and is above Stalemate with a 1.7:1 Ratio:

Ben abcde

It seemed that the Santa Claus Rally was doomed on 12/11/2013, but it has bounced back with vigor as shown below:

Ben Kahunas

…And here is what saved the day: 6 Buckets up on the 1-Day %B for the S&P 1500, of which there are only 3 in 7 Years:

Ben buckets

The Bears were caught in a “Bear Trap”, when it seemed that we were in for a rotten Santa Claus Rally.  Hope springs eternal and in this sensitive Market to any news good and bad don’t get too excited but play it a day at a time for now:

Ben Pat

Here is a reminder of the High Jump Targets I gave you before with the “Current Price” only changed to 4105:

Ben Targets

We are still climbing, but have not reached the High Target yet which is only 19 points away, so watch out for progress:

Ben Targets 2

…And finally, if we reach the Highest Target of 4350 by early January we should then be looking for a bigger correction than usual of at least a Major Correction of 12 to 16%, but that is all conjecture.  If we do have a big dip then we should see a “Bingo” or two (grey bars) and that may be a sign that we have bottomed and found support, but if not we will trot on down for something much worse.

Ben correction

I wish you all a Merry Christmas and a very Happy New Year.

Ian.

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