I’m not concerned about a seasonal tendency like a Santa rally. I’m concerned for the aftermath. In normal years there is a holiday euphoria that went missing for the most part this year. While the week directly after Christmas is usually bullish it can be diminished as the euphoria has passed but as I said there wasn’t much euphoria to speak of this year.
Stocks fell sharply on Friday, reversing earlier gains, on the back of a very disappointing U.S. jobs report; Earlier on Friday, gold was down for the sixth consecutive trading day and looked like it would be heading further lower.
This is an unraveling puzzle that has taken almost eight years to reveal perhaps only a portion of its many facets.
I am calling it an “Onion Pattern” because each time I uncover a layer, I find another fascinating layer.
Suddenly, markets are hitting trouble all over the place. I can’t tell you how many outs we have left but it appears we are starting to run low. We are coming to the slowest trading period of the year so I don’t think the market is in any imminent danger but I am starting to get concerned about what can happen in the fall.