Well well well. Looks like Santa Claus resumed his rally today and dropped off 55 Dow points worth of presents for everyone. This was particularly welcome since we managed to close above the highs of the last five sessions. In fact, today's close brought us right back to the lower edge of the RTC channel we fell out of yesterday. It's too soon to tell if that uptrend can be resumed though.Note in particular that the VIX actually rose today for the second day in a row, even as the Dow finished up. Very curious. And given that the Big Three futures (ES< NQ, and YM) are all down around 0.1% right now (1 AM EST), it's possible we may not get any follow through tomorrow. But trying to make any predictions this entire week is pretty pointless. Right now, I'm just along for the ride.
History suggests we might still have a few more up days left this year, and I certainly don't see any big losses on the horizon. I see the recent action as part of a process of overcoming the mid-2008 shelf. It might take some time to accomplish as the market gathers the necessary steam. In the meantime, the upper Bollinger band at 11,657 suggests there's at least a few more points left to gain in the short term. We'll see.
No trades today. I'm just letting my longs run right now.
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