The market (XAO) remains range bound. It is still in No Man's Land between One Standard Deviation above and below the 50-Day Moving Average. There's all sorts of ways of determining a trend - but I think most of them would tell you that this is still going sideways.
It does look like the Santa Rally is with us - but until we break out of this range, I'd still remain on the side-lines. Look for:
- A break above horizontal resistance,
- A break above the 20-Day high.
Another sign would be a break above the 1SD line on the chart above.
There's a big move coming. The Put/Call Ratio on the American market is extremely overbought. That doesn't mean the market will tank. The call buyers might be right.
Last night in America, in the dying minutes of trade a big player put in a huge call option buy order, which pulled the put/call ratio down from about 9 to about 6. That's a big, big play.
Either he is very right or very wrong. So just on that piece of information alone, the market is worth watching.
Problem is - we're closed for two days after Xmas while America is open. The big move could come in that time period. hmmmmm. Time Zones - you gotta love 'em.
Not much more to say right now. I've been busy Xmas shopping today, so I haven't been able to do a lot of analysis.
I'll be doing some more later tonight - and should be able to post some more then.
Until then ............ enjoy your evening.
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