Happy New Year..

On Friday, a great (yet bumpy) trading year will culminate in a >6% December melt up and an excruciatingly boring final week.  What’s amazing is Decembers gains are 1/2 of '10 SPX gains, yet all the real trading gains were done in the previous 11 months as the ‘winners’ traded since Jan- Feb Shadowlists have simply hibernated during this grinding (Dec) melt up.  Basically, this month’s gains are a figment of the market’s imagination, a month’s worth of ‘window dressing’, you could say.  Don’t want to end the year on a sour puss note, but this is similar to last year’s December melt up and subsequent mid-January correction. Still, this would only be a short lived correction.(hiccup)

All in, an artificial month, but, further gains likely into the front half of January with individual 'leading' equities catching up.   Part of a further melt up could be a Santa rally catching some air off a bouncing Shang (2 days now)- PMI to follow may subdue <5% inflation/over heating fears/ today’s strong eco’ data continuing (Chi PMI nearly 60/ earnings ahead(kicks off 01/10-14).  Today’s, v, good eco data and little market reaction (can’t push 1260>) is something the Bears try to use as ammunition today, but in this view, you can’t read much into things with this illiquid holiday environment.  This includes reading much into any gains/losses you may have in any individual equity holdings this week either as bids are no-existent and just one selling grinch can lead your stock to a loss.

Wishing all a Happy and Prosperous New year…