Did the ropes of Santa sleigh just broke?Merry Christmas to you...

Did the ropes of Santa sleigh just broke?

Merry Christmas to you all. One of the most trying years for many who started trading after 2008 crash. But we have nearly overcome 1 year. Surely it will come to end. Looks like at some stage of Q1 or early Q2. Then we will have the sun basking again.

Yes ESS lost half cent to finish at 32c. Our volume was on lower side, just over 472k shares traded. Trading was within a very narrow range, good to hold the level on a generally weak day.

ASX Li stocks were generally weak. Of the 54 stocks that I track, there was average loss of around 1.5%.

Overnight US Li stocks were also weak and lost by around 3%.

What next:
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Yesterday US markets gave away the gains of earlier day. SP 500 losing around 1.5% and finishing on 3822. Good GDP and jobs data seems to have given the necessary fodder to bears to get going. ASX lost around 0.6%
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Markets are very volatile and some say lot of games being played as well. Volatility Index at one time jumped over 20% intra-day before finishing around 10%. SP 500 broke some key major lower resistances to touch 3754, but finished at 3822. The number 3822 is just 1 above Tuesday finish of 3821 - again being played in a way to confuse/trap people.

So is the rally finished? Jury is still out and analysts are mixed. Many still believe that we may still see 3900 cross and possible fight at 4000 level. Bears are in control though, so it won't be easy - so need to have an open mind.

So what will happen tonight? Some say that Santa's ropes broke and he was seen repairing it. He has not returned back. He is still planning to come to town, but has had a setback. From trading perspective, Santa rally starts after Christmas and ends sometime in first week of Jan. So we still have time for the rally. Tonight crucial PCE data which Fed give a lot of weightage. This is our best chance to get the Santa rally. We got good PPI and CPI. Will we get another good PCE number so that we can finish 2022 on a positive note to forget the dismal year we had? Lets hope so. Enjoy your Christmas and all the best.