There are 6 real trading days left this year. The last week of 2012 the markets are open but very slow trading. The second of January the market will take off strongly as usual with all players back. It often happens that the last slow week will go in the opposite direction of the January start because the big players want to have short or long positions before the new year starts.
I see no big fundamental things happening the rest of the year. European Union leaders have pushed important decisions forward well into next year and the Cliff talks as of this morning news does not move. I think that the markets may have priced in a no agreement by now so I do not expect an enormous rally if the Cliff is agreed upon before X-mas. On the contrary I see the last several weeks of uptrend as a typical buy on the rumors and sell on the news situation.
My personal feeling now is that January will go on downside if a drop does not come one of these last 6 days. The reason is the overbought markets and the difficult R points at the top. There are definitely many players who want to get short positions as high as possible now.
As usual I will tell you if I change my big view.
I see no big fundamental things happening the rest of the year. European Union leaders have pushed important decisions forward well into next year and the Cliff talks as of this morning news does not move. I think that the markets may have priced in a no agreement by now so I do not expect an enormous rally if the Cliff is agreed upon before X-mas. On the contrary I see the last several weeks of uptrend as a typical buy on the rumors and sell on the news situation.
My personal feeling now is that January will go on downside if a drop does not come one of these last 6 days. The reason is the overbought markets and the difficult R points at the top. There are definitely many players who want to get short positions as high as possible now.
As usual I will tell you if I change my big view.
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