Santa certainly delivered an impressive rally. We gapped up big to start the day, held steady and then closed strong. Volume was up due to option expiration but it makes for a accumulation day nonetheless. Breadth was stellar and even the laggard financials perked up as we neared the close.
You have to be a real grinch to find anything wrong with this action today. Maybe it just is the good mood of the holidays spilling over and maybe it won't last for very long, but that doesn't diminish the gains.
The big question is whether we will follow through next week. We have a half day of trading Christmas Eve, which is going to make for some thin and whippy trading and then four full days of trading to conclude the year. This is an environment supportive of more upside so don't let big picture macro considerations blind you to the festivities. There will be plenty of time to be bearish when the new year rolls around.
I'm sure everyone is going to have a busy weekend. Have fun and just in case you don't check back in, have a Merry Christmas and Happy Holidays. I'll see you on Monday.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.
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