Monday, December 22, 2008
Santa Claus? Did he also lose his way in 2008??
Today's market action caught alot of talking heads off balance today as they were expecting the start of a Santa Clause rally that would take us into the new year. Really light volume which typically favors bulls ended up being a dud as prices moved down most of the day until right at the close. Toyota's warning of world economic slowdown combined with rumors of a big commercial real estate bankruptcy to start off the new year were blamed. I think you could also have some tax selling going on and that the normal window dressing for year end may be as much about showing that you have alot of cash on your balance sheet than anything else. We seemed to be continued to be caught in this trading range though I still think the show term move (next four weeks) will be higher. Time will tell though. For now the Grinch seems to really have stolen Christmas.