Santa Clause rally cancelled?
That was a real bummer last night, wasn‘t it? After I did my post last night, the markets fell even further. Powell indicated that they won‘t cut interest rates much further next year so „higher for longer“ FUD is back. It didn‘t come out of the blue, with inflation being sticky and economy robust, but the markets were probably smoking hopium.
But does that mean Santa Clause Rallye got cancelled this year? Personally I doubt it. The markets want it and what we saw yesterday was a bit of an overreaction imo. I wouldn‘t be surprised if we saw „buy the dip“ today and a relief bounce in the coming days.
Fingers crossed guy! We want our presents, don‘t we?
