We were telling subscribers as the market was declining some over the previous three days, that it should be just a brief pullback to test support at 50-day moving averages since our short-term indicators remained on buy signals, and we were coming into the 4th quarter’s quadruple-witching expirations week, which tends to be positive.
The next short-term pattern is the traditional Santa Claus rally that almost always shows up in the week between Christmas and the end of the year.
There is one other pattern that paying subscribers will probably not mind if I pass along at this point to those who are only interested in free information.
We have entered the period when small stocks usually out-perform the rest of the market for a while.
Not all small stocks of course, but there is a strong pattern in identifying which will be the winners and outperform the rest of the market.
Fiscal cliff talks still on predicted course toward successful conclusion.
For weeks I’ve been saying the seemingly hopeless fiscal cliff talks were just following normal negotiations, beginning with both sides ridiculing the other as only talking in generalities, not at all interested in reaching an agreement, not making any actual proposals, then that the first proposals were off the wall ridiculous, and then a minor give on both sides, and then another, while all the time protesting that the other side is not willing to move enough.
But from the reports and more frequent meetings lately it looks like they’re at the final stage of give and take, each side moving the hard line that was supposedly carved in stone closer toward the other side.
I still believe they will meet somewhere in the middle in a compromise that will not be a win or a loss for either side, but will be the best compromise both sides can come up with and will at least kick the cliff down the road.
To read my weekend newspaper column on gold click here: A Warning About Gold From Inflation, The Dollar, And Mining Stocks!
Subscribers to Street Smart Report: An in-depth update on the U.S. market, short-term and intermediate-term signals, gold and bonds will be in your secure area of the Street Smart Report website. tomorrow.
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About The Author
Sy Harding publishes the financial website www.StreetSmartReport.com and a free daily Internet blog at www.SyHardingblog.com. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!