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This Is Not Investment Advice
If Santa Proves It To Us - We Can Play on The Sleigh As Well
Our stance remains relatively the same. We are heavy cash with both Longs and Shorts. If Santa wants to play for real we have exposure already for that. Today we take a look at two Industry Groups and add one to the mix to give us more Long exposure potentially.
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First we will look at the Nasdaq General Market Indicators from Investor’s Business Daily. I keep harping on Volume big time. To possibly demonstrate that though I am crazy I am maybe not completely out of my mind . . . . look below at the Yellow dashes:
So - all those gains from the April bottom absolutely did indeed come from multiple bursts of rising upside Volume along the way. It’s as simple as that. I’m not saying we won’t see Volume arrive to the upside now or soon. Anything is possible. What I am saying is that thus far since the Thanksgiving mini melt-up, we have not yet seen a strong or even meaningful burst of upside Volume.
Here are the top Industry Groups after the 12/3 session:
We are already Long inside the red hot Medical - BioMed/BioTech group and frankly don’t mind that being completely disconnected from AI. Energy - Coal has also caught our attention in recent weeks and now it is making some serious moves. We like that as well as we need a lot more electricity with or without AI.
GLUE
GLUE Weekly
HNRG
HNRG Weekly
Thoughts and observations:
We don’t know how far Santa can run for and how fast Santa can run when doing so or if he will collapse . . . . in the event that Santa is a total freak (QQQ never seems to go down) and there is a run for a couple weeks then we want exposure to stocks showing the best Relative Strength from top Industry Groups that have been rising . . . .
The market is not showing me strong upside Volume, conviction, or legit Accumulation . . . . but with VOL Gamma dynamics, potential chasing, nonstop hype and QE Hopium . . . . . we can’t rule out anything especially desperation end of year and with mid-terms approaching . . . . . . . heavy cash and prepared for both directions . . . .
