Morning Minutes 12/11/2018 and Webinar Announcement

Who is revving up their sled today, Santa Claus or The Grinch?

December 11, 2018
8:45 am EDT

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

For most of this month, markets have been acting like the Grinch was in charge, with a combination of tax loss selling, big events and fears that political turmoil could impact the world economy sparking big selloffs and high volatility.

Yesterday, however, was an improvement for sentiment. US indices started out lower, recovered through the day and closed higher. A 34-point gain for the Dow suggested selling pressure easing and bulls starting to wrest back control.

As we move deeper into December, the stage may be getting set for a Santa Claus Rally after all. Tax loss selling often subsides as the month progresses, and the big event risks are starting to fade. Overnight, indications emerged that China is still willing to talk trade with the US, the OPEC+ meeting is over and UK PM May has kicked the Brexit vote can down the road, into mid-January at least. This leaves next week’s Fed meeting as the last big economic event remaining this year. With the Fed widely expected to raise interest rates again, the big question there is how many times is the Fed expecting to raise rates next year.

This morning finds bulls trying to keep the party going for a second day. Dow futures are up 228 points or 0.9%, the Dax is up 1.9% and WTI Crude Oil is up 1.3%. As has been the case for the last two months, however, the close is likely to be more important than the open. Santa’s on the runway and if markets can climb again, he may be ready for takeoff. If, however, stocks run into another wall of selling and finish lower, it would suggest the Grinch is still circling overhead.

Upcoming Events: Thursday Webinar

SIA Charts will be hosting its monthly webinar on Thursday December 13th at 1:00 pm EDT which will include comments on the market from Chief Market Strategist Colin Cieszynski and information on the new SIA Models section of the SIA Charts website.

Click on the link below to register for the event and receive the call-in details.

https://register.gotowebinar.com/rt/290617808385466115

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.