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Well maybe. But he will have to flatten the foot as there are only two weeks to go. No guarantees every time – but usually in the few days before Christmas we go loopy in the west and especially down under in OZ. So those few days can be written off. So there is really only two weeks for it to all happen.
But we also know Santa can come late and there have been many years when we have seen good moves in the days just after Christmas and the early days of the New Year.
I am not putting any money on a pre- Christmas rally as our Finance sector is still looking weak:
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And we need that sector to sparkle and that does not look too likely.
But we may see a small rally on the back of the Materials sector:
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But if that sector fails to head higher then it is good bye to any decent rally before year end.
We could see a post Christmas rally but it will be nothing to write home about.
The reality is, we have only seen a 38.2% retracement of this last run and that is unlikely to be enough to bring significant buying back.
So don’t hold your breath.
Enjoy the ride
Tom Scollon
Chief Analyst |