After Thanksgiving, rested traders are ready to scoop up stocks and exchange traded funds (ETFs) in hopes of an end-of-the-year Santa Claus rally. Shoppers will be out in force, scoping stores for Black Friday deals, big discounts may abound in reaction to the dismal consumer reports, and with the dollar weakness, expect many Northern neighbors to cash in, points out Beris Blog for Seeking Alpha.
Great things may be setting up for before and after the holiday, with many intrepid investors ready to try their luck again for the end-of-the-year rally. Inflation, unemployment and GDP reports are out and oil and gas inventories are stable. Consumers are not as bad off as the media has portrayed.
And remember, those sectors that have been hurt the most will rebound the best. Chinese-related ETFs are down more than 20% over the past 30 days, and they may snap back the strongest if a recovery occurs.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.