This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Santa Claus Mojo Continues Despite the Cliff

NEW YORK (TheStreet) -- Today is month end and thus today's closes are inputs to my proprietary analytics. On Monday we will have new weekly and monthly value levels, pivots and risky levels. It appears that stock Mojo should be strong enough to continue the Santa Claus rally that began from the lows of two weeks ago.

Stocks are fundamentally neutral according to www.ValuEngine.com as 60% of all stocks are undervalued, but 11 of 16 sectors are overvalued. The construction sector is the most overvalued by 14.6% followed by the consumer staples sector overvalued by 14.4%. The cheapest sector is multi-sector conglomerates at 6.9% undervalued.

On Monday, I wrote, Amazon, Google Wake Up To Downgrades as these stocks were downgraded to hold from buy, and thus became buy-and-trade stocks based upon pure Santa Claus Mojo.

On Tuesday, I wrote, Apple Wakes Up to a Downgrade to hold from buy and thus also became a buy-and-trade stock based upon Santa Claus Mojo.

Amazon, Apple & Google were the subject of my Nov. 21 story Santa Claus Rally Eyed for Online Leaders Apple, Amazon and Google where I explained why these stocks had the ability to lead a Santa Claus rally.

On Wednesday, I wrote, Homebuilders Are Risky Bets Despite Positive Data where I explained that the home builders continued to be overvalued and trading on pure Mojo and that investors should book profits in these stocks.

On Thursday, I wrote, Retail Bubble Stocks Play On Earnings Momentum and these names were seeing improving Mojo and remain stocks to consider in buy-and-trade strategies.

Analysis and Key Levels for U.S. Capital Markets:

Analysis of the Yield on the 10-Year Treasury Note (1.622%): The monthly chart shows that the decline in yield is overdone, but with a potential QE4 on the way yields should stay low. The five-month modified moving average is 1.755% with the 120-month simple moving average at 3.647%. The weekly chart continues to favor a trading range between my semiannual value level at 1.853% and my semiannual risky level at 1.389% with the five-week MMA at 1.675% and the 200-week SMA at 2.777%.

Analysis of Comex Gold ($1,725.70): The monthly chart remains positive with the five-month MMA at $1,679.7. The weekly chart is neutral with the five-week MMA at $1,725.30. This favors a trading range between my semiannual pivot at $1,702.50 and quarterly risky levels at $1,844.90 and $1881.40. My semiannual and annual value levels are $1,643.30 and $1,575.80.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,487.69 -26.68 -0.16%
S&P 500 1,875.78 -3.77 -0.20%
NASDAQ 4,135.0420 -26.4160 -0.63%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs