The Santa Clause Effect

THE WEEK

The Market had a big gap-up on Tuesday’s opening because of the CPI report.  The very next day it went down on the PPI report.  Overall, it was an up week with a Market gain of 2.25%.

This kind of yo-yo price/action makes trading difficult and uncertain.  The good news is the trading herd seemed to take it in stride with no panic surges.  Below is a picture of the VIX indicator which is a measure of traders emotions.  It is an inverse indicator – when the indicator is high, traders’ fears and uncertainty is high.  When it is low as it is now, trader’s are more confident with their trades.

LOOKING AHEAD

I am expecting a quiet week.  It is a time of friends and family in America as are celebrating Thanksgiving on Thursday.  The US Markets will be closed Thursday and will close three hours early on Friday.

HOW AM I DOING?

Much better this week with a 3.04% gain while the market had a 2.24% gain.  I am still trading with caution.  Not a great quarter so far and frankly I am OK with just treading water amidst the chaos.  There is still the month of December which is traditionally a good Market with the Santa Claus affect in force.  That force has not been a factor the last three years with COVID and inflation woes.  I think this year we will start to see more of the normal affects start to happen again.  It is not that the Market is in better shape.  I think it is because we have become somewhat numb to all the bad news.

No Webinar This Week

Enjoy your Friends and Family – Happy Thanksgiving!