Is the Santa Claus rally finally here for the stocks?

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As the year draws to a close, we have plenty of ideas to watch out for.

Tuesday’s price action could be the late Santa rally that people were hoping for.

While better late than never, we should be watching the major indices until Thursday as the trading week is going to be cut short with the market close on Friday.

With that said, let’s take a look at a few ideas that are falling into place this week and the year ahead.

One space to watch is the crypto which is currently showing price consolidation action within large cap coins, like Ethereum and Bitcoin.

However, if cryptocurrencies start to rally, we can wait for Hut 8 Mining (HUT) to do the same, as it is a large holder of self-mined bitcoin.

Currently, HUT has returned through the 200-day moving average at $ 7.63. If it can hold above that price point, we can look for a quick rally from the lows.

Another interesting choice is Coty (COTY) which focuses on consumer beauty products. COTY is interesting not only for its daily break above 10-DMA, but also for its recent bullish phase change and potential long term trend change on the weekly chart.

If COTY can maintain its 200 week moving average, as the chart above shows, it shows that it is settling over multiple time periods.

Additionally, by using our proprietary indicator of actual movement, COTY also maintains its 50-DMA momentum.

On a daily basis, DR Horton (DHI) also made a recent bullish phase shift and a quick reversal from Monday’s low.

Homebuilding and Mortgage has the potential to boost production as residential construction prices begin to normalize in 2022, making it a long-term game if it continues to peak.

That said, we need to remember that the price action in the market is currently more volatile and although Tuesday was a big green day for major indices, we need to be careful of air resistance.

Analysis and summary of stock ETF trading:

S&P 500 (SPY) 470 resistance zone.

Russell 2000 (IWM) 224 resistance.

Dow (DIA) 360 resistance.

Nasdaq (QQQ) Watch for the second close above the 50-DMA at 387.99.

KRE (Regional banks) Watch 67.25 as new support.

SMH (Semiconductors) 288.14 new support.

IYT (Transport) 258.53 new support.

IBB (Biotechnology) Must erase 155.

XRT (Retail) 83.54 new support.

Twitter: @minute of the market

The author may have a position in the titles mentioned at the time of publication. All opinions expressed here are solely those of the author and do not represent the views or opinions of any other person or entity.


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