Market Continues Upwards As Predicted!
In fact, me and my Master's Stock Options Picks subscribers woke up today in Asia to a great surprise on the SPY Call Options that we put on last week in anticipation of such a move! I personally made $2950 on it... not a million but I am not complaining!
Indeed, the market behavior so far continues to affirm my outlook that this is going to be yet another positive December since 9 out of the last 10 Decembers have been positive ones as well. There are good reasons for this phenomena though.
First of all, institutions need to window dress to make their portfolios look good for year end reports and companies also want to see a higher net asset value by the end of the year (including shares of their own stocks that they own). As such, there tends to be systematic buying in December and all through to January. This was taught as the "January Anomaly" when I was studying in college and more commonly known as the "Santa Claus Rally" by the layman.
Secondly, options traders continue to keep total equities put call ratio in favor of call options which is usually a bullish confirming signal.
So far, I am not seeing anything that can suddenly put this rally at risk. Recent economic data, especially the ISM index and Jobs report, are on another upwards trend so we should not be getting any nasty surprises from these numbers this Friday.
Lets usher in Santa Claus!
For now, the market remains in all out bull trend!
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