What happened to the Santa rally?Yes AGE remained flat to finish...

What happened to the Santa rally?

Yes AGE remained flat to finish at 3.9c. Our volume was on lower side, just over 4.5m shares traded. Very low volume, I think we have only done 4 days this year in 4m+ shares. Good to hold the range on a weak market day

ASX U stocks were slightly ahead. Of the 25 stocks that I track, there was average gain of around 1.5%.

Overnight US U stocks were also in green and average increase was similar to us - around 1.5%. U future gained 75c to finish at $48.85 - some movement at the station after a while, at least in positive direction.

What next:
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Yesterday US markets had a choppy day. SP 500 losing around 0.4% and finishing on 3829. ASX too lost in similar range - around 0.3%
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So the Santa rally that was to start yesterday did not happen, So will we not get a rally this year? Although trading has been patchy and big tech stocks are in decent decline, dragging the indices with them. The technicals are still pointing towards some sort of bounce to happen. SP 500 needs to regain 3900 and possibly 4000. The sloping trendline which we reversed from at 4100 doing double top, has come down to around 4030 level - that could be in play, in case a bounce happens. If it goes down, 3750 is crucial to hold, else a quick drop to early 3600 is in play.
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Its a real test of the stock market. Its been a tough 2022. We had a massive sell down in June when we made what we are calling as June bottom. After exactly 6 months, stocks are behaving nearly the same, showing no strength and many looking like it may capitulate. There is a chance we may bottom out here - but whether its now or a bit later, is to be seen.
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Personally as I mentioned on the weekly report, I am playing defensive and looking for clear direction. Many stocks have reached good buy levels, but I want to see a change in trend before making a jump.
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So what will happen tonight? SP 500 is trading sideways for some time now. Very soon, it could be tonight, that the coiling may have to give. Which direction will it go? There is a good chance Santa may still bring some cheer and we make some good gains in the next few days. Will that happen? Lets hope so. All the best.