Ian Woodward's Investing Blog

It’s that time of the year with just four days to Christmas Day, and at long last the Santa Claus Rally seems to be on its way.  But don’t count your chickens before they are hatched, but the last three days have been encouraging:

I have always recommended that one should have three scenarios, “Up, Down and Sideways” and let the Market tell you which one it is on.  We had another “V” Bottom two weeks ago and inside three days this past week we are back up to essentially the old highs.

The previous Leaders and Glamour stocks I call Canaries are not leading except for FB and LNKD:

The VIX has fallen back from nearly going into Oscillation, but we are without a reasonable cushion, and the VIX can go either way, though the feel is that it is headed down which is good for the Market:

The concept of looking at the % of stocks in the Top, Middle and Bottom four buckets is proving interesting and we shall see if the pattern of a couple of months ago are repeated again to confirm there may be value in the concept:

…And here is the sharp fall followed by the quick recovery in a matter of ten trading days…but now what’s next?

Let’s look at the latest set of charts I have introduced you to, to get a flavor of which way the wind is blowing.

The next three days should give us a clue of which factors rule the roost at a point of indecision such as this is.  Good luck to you all and Happy Holidays to all of you around the globe at this holiday time!  Thank you for your support.

Best Regards,

Ian.

This entry was posted on Sunday, December 21st, 2014 at 8:23 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.