Dec

30

2005

Expectations of the Masses

Once again the market doesn’t deliver on expectations of the masses  .. not much of a surprise there.  Many market commentators had been wondering if we’d get the Christmas rally.  What was that we had in November?  The Christmas rally came it a bit early this year and another run up like that was possible but not probable.  The market was due for consolidation and that’s exactly what we’re seeing now.  No reason for concern as the market works off recent gains and consolidates quietly with holiday volume.  There seems to be some trepidation about January as the sell off of last January lingers in the minds of traders.  Perhaps the market will surpise the masses again and we’ll get a forceful rally and break to multi year highs once again.  We won’t get a true sense of direction until traders return from time off, but currently there is no reason to think that the run can’t continue after a bit more consolidation.  Support levels remain intact.  Here’s to a great 2006 – Happy New Year!