It’s Christmas rally time and the stock market could rally the rest of the week.
Nice turn in the market today off Friday’s nasty plunge with divergences all over the place.
For instance, my nifty-50 stock list, after registering an important 40 stocks on sells on the 12/14 drop, could manage 31 on sells on last week’s plunge.
As for other breadth indicators see the green circles on the chart below — plain and simple those often trigger bounces, and bounces can trigger rallies. In other words, it is likely the market bounces the rest of the week and could maybe rally the rest of the year (just maybe).
I’m looking to TQQQ, TNA and UPRO, the 3X-leveraged ETFs for the major indexes to play the bounce. Stocks in the nifty-50-list giving new buy signals for tomorrow’s open included EFUT, ZEN, HA, PCRX, AMAT, and WAL. Big caps giving individual buys signals: WMT, HD, INTC, MMM, SBUX. And there are always futures and options.
(Anything written here should not be construed as investment advice but instead no more than a personal log of my market timing.)
All in all in this traditionally bullish season, it appears one better not pout, and better not cry, because Santa Claus is coming to town.
(right click image for a larger view)