Will There Be a Santa Rally?

I expect one as i believe we could see Dow 12k by January 2011.

After a volatile week of going nowhere for two weeks and the filtering out the noise of a potential Korean Civil War, we are still trading above the 50dma. In Elliot wave terms, we are in wave 4 correction, which is notable for its oscillations. If we break out next week to above 1210 that would set in motion the Santa Rally and we could see 1300 by January.

If history is any guide, we should see a Monday breakout or consolidation.. as the two worst Thanksgiving Mondays were in 2000 and 1973..both bear markets.. not the case now.

Never Fought the Fed

Wall St. Adage- Dont Fight the Fed
Is it really wisdom or just plain old follow the herd mentality? This adage will be tested in the future, so far so good.

Well Summer has pasted, where Bear Market Paranoia was entrenched in all our minds this summer, including my own. The summer falloff corrected some of the bull market gains and provided the necessary doubt in most investors minds to fuel a new high, forcing them to chase or in most cases cover their shorts.

Forecasts still look rosy.

I see a top forming by next week, as the SnP should hit 1250. Then a correction into the end of December, followed one final push into March 2011, where the bull market top will reveal itself as the cycles from low (March 2009) to high (March 2011) will once again rein supreme, as other past cycles have proven.