Ian Woodward's Investing Blog

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.

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

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

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:

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

…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:

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:

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

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

…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.

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

Ian.

This entry was posted on Sunday, December 22nd, 2013 at 6:43 pm and is filed under HGS Principles, Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.