Is Santa really on his way?Yes ESS gained 1c to finish at 32.5c....

Is Santa really on his way?

Yes ESS gained 1c to finish at 32.5c. Our volume was on lower side, just over 697k shares traded. Good trading day today though volume was not very big. Stayed away from 30c and getting near 34c - getting past this will be first hurdle.

ASX Li stocks had a mixed day. There was no strength as to be expected after a big market rise. Many stocks still finished in red. But overall, of the 54 stocks that I track, it was flat - average no gain or loss.

Overnight US Li stocks were also mixed. Many still finishing in red. But overall average was still flat, no gain or loss, same as ASX Li.

What next:
.
Yesterday US markets made a significant gain, trying to overcome the 4 big red days earlier. SP 500 gained around 1.5% and is now sitting at 3878. ASX too was in green, but the gain not as much, it finished .
.
So SP 500 now looks like on its journey up. First critical level will be 3900, then 3960 and a very critical one around 4000. Downside needs to hold 3810 for start. Although we had a very good US green day, most punters are still hesitant and would like to see the continuation before jumping in - hence no big rise in risk on resource stocks.
.
Lead indicators are still in favourable zone - Dollar Index fell, Yields stayed steady and Volatility Index VIX fell to around 20 level. One problem - previous instances when VIX has fallen below 20, SP 500 has declined. But that could change if VIX can stay there for a while so that SP 500 can make gains.
.
Although nothing is certain, many believe that we may have some form of Santa rally in the next couple of weeks - whether its feeble or strong is to be seen. Most likely scenario is 3900 will be taken, there will be some fight around 4000 level - either it retreats from here or takes out this as well. Then finally 4100 - the double tops. That is a very critical zone and it may not succeed. But one step at a time, to take out 3900.
.
So what will happen tonight? The rumours around Santa coming to town continues. Yesterday it was about Santa getting ready in his sleigh. Some say they have seen him very near to the town. Some think he was gulping down bottles of red bull - not sure whether a symbolic support of the bulls or getting extra energy to overcome the resistance of the big bad bear. Some GDP and jobless data tonight. They could provide some direction. But the rally is just looking like starting, we need some confirmation, another green, possibly a big one. Will that happen? Lets hope so. All the best.