Market tops end on good news, exciting news, happy faces. We think the Facebook IPO is the happy news at the top of this market. While media buzz around this deal holds up stocks just long enough for professionals to sell to momentum traders (ie mutual funds) to raise cash to buy this IPO.
The SOX cycle is telling the well informed, secure those 10% gains from the Santa rally, that's an offer you can't refuse.
Members can compare this cycle to this post for more: When will the bears land one on the chin?
The SOX cycle.
Folks should review the etfs for France (EWQ) and Germany (EWG), those charts tell the true story, the are awful and will roll over with the Euro (FXE). Yuk !