Is that Santa sitting on his sleigh?
Yes SYA gained half cent to finish at 20.5c. Our volume was quite low, in fact lowest in nearly 10 months, just over 23m shares traded. The low volume indicates the sellers are exhausted. Good signs if the markets bounce in the next few days, looks to me a test of 24 is coming.
ASX Li stocks were in slightly happier mood after average fall of 2.5% yesterday. Of the 54 stocks that I track, average gain was just over 1%.
Overnight US were very mixed and no clear pattern, overall it looked like slightly in green, but just slightly from overall average.
What next:
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SP 500 after going through reds and greens, ultimately finished slightly ahead, gaining 0.1% at 3821. ASX was in great mood, making big gains middle of the day, losing some late, but still a decent 1.3% gain.
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So SP 500 now has stopped its 4 days of red with a small green. It was not a convincing green by any means. Is this a sign of reversal that some bounce is coming or the huffing and puffing bears after 4 days of trampling thought need a rest? Overall the bears are still in control, medium term is still looking bearish. But as I have been saying for last 2 days, from a technical point of view, it is looking very likely that there may be a bounce. We failed to get going on Monday and went back, we attempted to go yesterday, could not run, but still ahead. Most indicators and charts are pointing towards a bounce - no guarantee but very good probability. Major number is around 400o, but before that important to get above 3900 (there are few more gaps before that).
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Lead indicators are confused. Volatility Index has been dropping while SP 500 is losing, very unusual but somehow explainable. Dollar Index falling too which is again contrary to what SP 500 is doing. Only Yields have stayed true and have been rising for last couple of days, though fell before. So all Lead indicators are not confirming that the big drop to 3250 is going to happen soon. In fact, they support a bounce theory.
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Personally I am in hold state mostly waiting for direction before decide to go in one direction. Doing small trades buying selling stocks which are in strength vs those looking weak.
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So what will happen tonight? There are rumours that Santa has been sighted cleaning up the sleigh, tightening the ropes, and taking his seat on the sleigh. Whether he plans to come our way, not sure, but yesterday's US trading and today's ASX showed that many are expecting him to come this way. Will that happen? Lets hope so. All the best.
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