Happy New Year to every one. Although it was a disappointing year, especially second half, at least we finished the last day on a positive note with hope of good times to come. There is a chance we may still have some turbulence in the Q1 of 2023, but odds are very good that we will do our final bottom and then rise much higher during the year. For long termers who have already bought, time to sit back and let the last phase play out. For those with coins, we are near June bottom in many stocks. There is a chance it may do a double bottom at these levels, so good to time to add. For those wanting to trade, there still maybe some swings in play, both direction. I wish you all a very prosperous new year, especially in the share market. Just my thoughts, anything can happen, so please dyor.
Did Santa finally come to town?
Yes AGE lost 1 pip to finish at 3.9c. Our volume was on lower side, just over 4m shares traded. Again a very low volume day, I think the second lowest volume for the year. Trading has dried up, sellers don't want to sell at these levels, buyers not getting enough confidence at this stage. Hopefully next year will be a good one.
ASX U stocks were in good green. Of the 25 stocks that I track, there was average gain of around 2.5%.
Overnight US U stocks did take part in the rally - average gain was around 2%, similar to us.. U future no change at $48.85.
What next:
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Yesterday US markets finally made a run in positive direction, SP 500 gaining around 1.75% and finishing on 3849. ASX too was in green, but just 0.25%, late selling towards the close wiped out some gains - punters still jittery.
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I have been calling for a bounce last few days, but bears were not in a mood to give anything. Even yesterday when things were not looking good, I wrote that I still have hope that a bounce is in play. Thankfully it did. Santa too had his problems, the rope broke down, he felt he needed extra strength so stopped to down red bulls. But finally he made it. On the last day of the year. When Santa comes, he has a big task which cannot be done in a day, so there is a chance he will stick around and give all the goodies next week.
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SP 500 is at a good level. The numbers I have been talking about last few days, 3900, 4000 and 4030. That is if we move in positive direction. Downside, critical level 3750.
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Lead indicators are looking good. Yesterday all 3, the Yield, Dollar Index and Volatility Index VIX fell. So all the indicators are pointing towards further gains to be made.
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At this stage the shorting in US markets is at the highest level ever. Many may lose a lot of money if markets go up from here. So those punters will try their best to push it down. But the market Makers (people who run DOW business), they will have to pay out. So its in their interest that markets don't tank. There is a real scenario that if markets go up more, there may be a big short squeeze which can take us to the 4000/4030 level. .
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Personally I have added some from last few days as I feel there is a chance of a bounce - so adding to any long position and looking for swing trading as well. Markets are still volatile though, anything can happen, so please dyor.
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So what will happen tonight? A short trading day tonight. We finished in green today. US punters who have been slogged may also want to finish with a smile - and finish with a bang on another big green.. Will that happen? Lets hope so. Enjoy your weekend and New Year. All the best.
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