NEW YORK ( TheStreet) -- A week ago market sentiment turned on a dime when congressional leaders announced that they were optimistic of finding a compromise solution that prevents the economy from falling off the fiscal cliff. I for one was quick to recognize the changed environment for U.S. equities even though I remain bearish longer term.
Some key levels were penetrated to the upside on Monday setting the stage for the Thanksgiving week rally, which is building a base for a potential Santa Claus rally even with continued negative weekly chart profiles for the major equity averages. Some of the weekly chart profiles could shift to neutral as Santa and his sleigh prepare to leave the North Pole a month from now.
On Monday, I wrote, Stocks Set to Bungee from Fiscal Cliff where I described the potential key reversal for the Russell 2000, which was confirmed at Wednesday's close. I also tracked the upward trend for the S&P 500 above my annual pivot at 1363.2.
On Tuesday, I wrote, Since QE3, Treasuries Outperformed Stocks and Commodities and explained that it could be time to shift from a "risk off" investment strategy to a "risk on" "buy and trade." I showed how U.S. Treasuries should be a component of a long-term investment Strategy if you do not intend to "buy and hold."On Wednesday, I wrote, Santa Claus Rally Eyed for Online Leaders Apple, Amazon and Google explaining why these stocks have the ability to lead a Santa Claus rally. Investors following my "buy and trade" strategies could have captured gains in these leading MOJO stocks.