The official Santa Claus rally just started. The reasons are:

  • Credit default swaps are up
  • Junk bonds are up
  • McClellan oscillator tuned up, finally
  • Advance-decline indicator is sharply up
  • Because it’s Christmas time

Of course I do expect some kind of sell-off in the remaining two days of this week but it won’t go as low as past Monday lows, that was the bottom, methink.
We will continue our scheduled bearish programming next year πŸ™‚

No, it doesn’t mean I will stop posting, but my posts for the rest of the year will be bullish πŸ™‚

Update. The Libor spread problem I’ve pointed in the comments yesterday is charted here:

20 year record that we are observing. Feds will have to cut in December, no doubt I have about that. Should give the market what it wants, for now, i.e. Santa Claus rally will continue for the next few weeks

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