Everybody is anticipating this smooth Santa Claus rally into years end. We may eventually get that, but this down wave could be MUCH stronger than most think, because we're all content.
Many are looking for 'next yr's big winners' in this yr's losers(including myself). That strategy has to be less effective when everyone is bullish, right? Or does this mix of sentiment and fundamentals just suggest the big winners aren't going to come from the most obvious areas like gold miners etc?
Speaking of this year's losers, it's again proven hard to time an entry into those. There are just people selling for tax loss purposes everywhere into ANY strength. Just look at coals like ANR. It ripped a whole dollar on Monday (12/9) and it's already reached it's previous low.
While everybody is going to be clamoring about the January barometer, it's not as statistically useful in mid-term election years. According to the folks at Trader's Almanac, 10 of the last 16 MTE years have followed January's direction. On top of that, the first five days in January have told us nothing(8/16) in MTE years.
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