If Santa Claus should fail to call, bears may come to Broad and Wall.
That’s an old stock market adage indicating that if we do not see the traditional Santa Claus rally over the final five trading days of the year, the potential for a bear market or major decline increases in the New Year. The final five days clocks at the close on the 21st, coinciding with the end of the world according to the Mayans.
There is also a trend that shows a very seasonally strong period for semiconductors from now through year-end. This group is one my canaries in the coal mine and absolutely vital for the long-term success of any bull market.
Besides the most overhyped event since Y2K, the “dreaded” Fiscal Cliff, news flow should really taper off until January 2 or 3, which is one of the reasons why this is typically a seasonally positive time of year.
It’s also getting close to when I release my Fearless Forecast 2013 as well as my Shockers 2013 lists. If only I knew what the heck I was going to write about!
Hopefully, I will send a Street$marts shortly, but in case I don’t, I wish you and your family a very happy, healthy and safe holiday week!