Christmas Rally Emerges
November 13th, 2005 by BWV
The markets finally broke out of that 2-week consolidation, showing impressive strength on the upside. Seasonally, this is a time when many “Christmas rallies” have begun (kudos to Hotto on introducing me to the social and psychological factors behind this highly repetitive behavior).
Combine investors’ (holiday-induced) festive attitude with fund managers’ performance anxiety, and you’ve got a potent environment for long side trades.
I’ll return from Charlotte late tonight and will try to get some market analysis in before hitting the bed. I’ve gotta shop for some long setups, and also investigate some Energy stock charts which look like potential short sales thru year-end.
More on both later..
