Let’s look at the positives – the markets generally are in strong uptrends. And until those uptrends turn down, that’s the place to be. The long term (monthly) and medium term (weekly) charts are quite positive. The Advance/Decline Line is positive.
The daily XAO looks shaky with some technical indicators already going negative.
The Ozzie Dollar is looking weak – a strong Ozzie is necessary for the liquidity to sustain a bullish stock market.
Shanghai and Tokyo are showing some near-term weakness. Japan has been in a strong uptrend and that has not obviously broken to the down side, but some indicators suggest it will.
The coming week leading into Christmas has a mild positive seasonal bias. After Christmas and into New Year is seasonally strong.
The market may be able to hold on to its seasonal upside bias until the New Year. And the boyos in the prop trading desks will have their champers.
I’m not so sure about January. And the more I look at the daily charts and indicators, I’m not so sure about Christmas.
Don’t pre-empt the markets.
Cheers
Red
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