[Market Outlook] Look Who Finally Showed Up

[Company Logo] Look Who Finally Showed Up December 26, 2021 Weekly Market Outlook By Keith Schneider, Donn Goodman, and Holden Milstein He took his time but we were graced with the start of a “Santa Claus Rally” this past week as we had described in [last week’s commentary](. [image] For many of the reasons we listed in our article last week including lighter volume, less institutional buying/selling amplifying the more retail portfolio positioning that takes place, end of year bonuses, distributions into profit sharing plans, and a belief that Omicron is not quite as potent as originally expected, (although a record number of Covid cases emerging in the U.S.) it was reason enough for the buyers to come in. We suspect in earnestness, that the defensiveness that took hold in latter November and early December was met with “what now” and people clamored to redeploy some of the cash that found its way into the sidelines. Also, a spike in negativity caused the Bears to become less defensive and “throw in the towel” that they needed to have some capital firmly entrenched in the market. But how long will that last? Markets (and our technical indicators) are pointing to a less healthy environment (intermediate to longer term). Still higher than normal valuations (P/E, Price to Book and expanding cost of manufacturing and production) may lead one to prognosticate that 2022 may not produce returns anywhere close to 2020 & 2021. In fact, large firms like Bank of America and Morgan Stanley have both acknowledged a slowdown in corporate earnings and a possible contraction of multiples; especially if rates rise even slowly. Both calling for an S&P 500 end of year (2022) below where we sit today. Who knows? We are astute enough to know that the market, money flows, geopolitical risks (Taiwan, Ukraine, and the Middle East all potentially flaring up), the dollar, inflation, top line revenue growth potentially slowing, and eventually bottom-line earnings will do more to dictate where the markets go and will nullify many of the pundits’ best guesses where we will end up. For now. we will, as we always have, depend on our analytical tools, proprietary indicators, risk averse investment strategy management and good ole experience and common sense to guide us. Here are some of the indicators we look at in more detail. Click the links below to continue reading this week's market highlights and market outlook video. [Click here for the Free Video and Market Highlights]( [Click here for the Premium Video and Market Highlights](=) Best wishes for your trading. Keith Schneider Get more - follow us here... Twitter [@marketgauge]() and [@marketminute]() and [Facebook]() To stop receiving this go [here.]() Got Questions?Office hours 9-5 ET (New York time) Email: info@marketgauge.com Live Chat: Go to bottom right corner of our [home page.]( Call: 888-241-3060 or 973-729-0485 There is substantial risk of loss associated with trading any securities including and not limited to stocks, ETFs, futures, and options. Only risk capital should be used to trade. Trading securities is not suitable for everyone. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. To unsubscribe or customize your email settings, [click here](). "Market Intelligence at a Glance + Tools For Serious Traders" [Unsubscribe]( MarketGauge.com 70 Sparta Ave, Suite 203 Sparta, New Jersey 07871 United States (888) 241-3060