It is looking like yet another failed attempt to spark a Santa Claus rally. Maybe we should be looking at the Russian Orthodox calendar where Christmas isn’t celebrated until January 7th? Maybe, with all the anticipation of Chinese money we should focus on their seasonality? Maybe the seasonality of the countries where the money is, is more important than the seasonality of countries that have nothing but printing presses?
We had some decent data today, but it wasn’t off the chart, and Draghi was out there putting some more nails in the ECB printing coffin, so we once again got too far ahead of ourselves. It is almost shocking how little moves in the S&P spark such changes in sentiment. It is incredibly illiquid, and not sure that we will see many more attempts to rally into year end. Closing the books are waiting til next year seems to be the focus, and given how many 1st quarter bears there are, I would expect to see some short front running rather than another attempt to ramp the markets ahead of year end.