Bears holiday hybernation
by
, 12-22-2017 at 01:22 AM (964 Views)
Stocks rallied on Thursday as the bears seem to have taken their normal early holiday break and let the bulls have their way. There was some late selling to take the indices off their highs, but there was a lot of green in the indices and small caps, which love the tax bill, led on the upside. The Dow added another 56-points with the S&P adding a similar percentage.
The Nasdaq lagged a bit with the FAANG stocks down on the day as the rotation continues rather than outright selling of stocks. This could be for tax purposes since short-term capital gains tax rates may be lower for those who wait to sell in 2018.
Daily TSP Funds Return
Except for the possibility of a government shutdown, this market will feed off of the tax bill, seasonality, and maybe some profit taking so technical analysis may be almost a non-factor. For that reason I am going to cut you a break today and make this real quick.
Update: Congress approved a temporary spending bill so there will be no government shutdown - at least until the new January 19 deadline.
The SPY (S&P 500 / C-fund) has been moving sideways to slightly lower since last Monday's gap up rally. We saw the open gap get filled and that was about all the bears were willing to do. Next week could be a different story or, as I mentioned above, sellers may hold off until January for tax purposes.
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Thanks for reading. Have a very Merry Christmas, and Happy Holidays to all. We'll see you back here next week.
Tom Crowley
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