FOR MONDAY: (12/18) Can Santa deliver much more wealth? A tax bill? Record high stocks and Bitcoin? What other cookies does he have in his bag for next week? We always worry about people heading for the exits and expect them to clear out by Wednesday. We do see year-end profit-taking for stocks Dec. 26-29 and fund position squaring. Always tricky. We have completed Part 1 of our Yearly Forecast issue of Fortucast and it’s available. Working on covering Bitcoin futures but may take a month to really get a handle on it.
MARCH E-MINI S & P 500
S & P ANALYSIS FOR MONDAY: (12/18) New highs here tell us 2691 and 2705 will come in probably next week. Monday and Tuesday look lower but it may not mean much and just be another throw away Monday after hangovers from weekend Christmas parties and exhaustive gift shopping.
SHORT-TERM: (12/15) We looked closely at patterns and cycles and we’re still expecting 2 more highs to 2691 and 2705 before a dip to 2595-2600. Given that the market should hold up into Jan. 5, upper targets of 2732 and 2740 are very possible and likely. The week of Dec. 26-29 looks like year-end profit taking but at most that might be 70 points and the trade would recover it Jan. 2-5. It does then seem like a 3-week correction into Jan. 24-25 is likely with a recovery into Feb. 2.
CYCLE SYNTHESIS: Retracing Monday/Tuesday, higher into Friday; lower Dec. 26-29; higher into Jan 5 and 7.
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