Was That the Santa Claus Rally?! (TSLA, SPX, DJIA)

Was That the Santa Claus Rally?! (TSLA, SPX, DJIA)

Hope everyone’s enjoying the holiday season and that we’re all venturing toward peace, prosperity and fulfillment in the New Year.

Wild times, eh?

Not only was this week’s GDP report the best in a decade, but the Dow closed above 18,000 for the first time in history, gas prices are down for three-months straight (to just two bucks a gallon), gold has fallen back to its bear market low (almost) and the dollar is setting new highs as we speak.


What the hell kinda world is this!?


Our sentiments exactly.

But we don’t judge.

Just the facts, ma’am.

And the facts are now telling us that everyone’s on holiday.

Essentially, that means nothing’s happening in the market that can be relied upon to continue in another ten days time, when we’re all back to the grind, recovered from our hangovers (and Visa bills!) and again pushing the wheel of pain.


Push, Arnold, push!


That being said, there are a few secrets that can be revealed to you at this ‘down-time’ of the year that should bring you a little cheer – secrets, by the way, that you won’t hear anywhere else.

And they go like this –

Come-uppance Time is at Hand


As we said above, we don’t judge, but someone sure is, and over the next several months you’re going to witness some truly incredible happenings.

We can’t reveal to you sources, or point out any concrete details or name names at the moment, but know it well, and record it in a book to be kept for all time – that Matt McAbby is now informing you that the heads of nearly every revered institution and organization in our land – and potentially elsewhere, too – are going to start rolling in numbers that boggle the brain and twist the senses.

That’s right. There’s a movement afoot on the part of several large and extremely well organized groups (again, we can’t name names, but suffice to say that the police are involved) to take down the establishment heads of our nation one-by-one on genuine legal charges that will lead to genuine jail time for the lot of them.

Come on McAbby, you’re working us…



Listen carefully –

If you’re one of our regular readers, there’s a very good chance you’re also one of those decision-makers and influence peddlers who’s on his way out. So we have to warn you – be careful. If, on the other hand, you’re just one of us ham-and-eggers, then know it equally well – the show is going to be delightful. The chickens are coming home to roost in a most mollifyingly exquisite manner. In fact, no one could dream up a more suitable, poetic path to justice anywhere.

And know this, thirdly – the evening news will never be so joyous to watch as when the takedown begins. Just remember to pour yourself a chilled tanker of bourbon, pop a bag of ranch flavor Doritos, light a fire and giggle and hum your way to the most blissful, burp-filled cozy of an evening with the Mrs.


You Lied About your Military Record!


Everyone will be exposed, bub. Everyone. Best to come out and admit it now, before the fury of the masses is overwhelming, and you become just another lump of human meat to be strung up on the interstate.


There’s little question that the bull market remains in force and that higher prices are to be assumed as we move into 2015. The new highs on the Dow, S&P 500 and (almost) the NASDAQ are an unequivocal signal that the longs are winning and will continue to do so going forward.

But that doesn’t mean we have a smooth ride ahead of us. On the contrary, some butting and jousting and thrusting and cracking surely await us, too.

And we wonder aloud if after the market’s second quick dive and immediate rise in just under three months, we could be on the verge of a third…?

Look here –


Technically, there are scattered signs that it could be the case, and we’d love it would it were so.


Because the best money is made on quick drops.

So if a quick decline is in the works, here’s how we’d play it.

Take a look at the last six-months of Tesla Motors (NASDAQ:TSLA), a stock that moves. We believe Tesla’s next move is lower, particularly if the third snap-sell event of the quarter materializes, as we believe it will.

Here it is –


After coming off from $290 to nearly $190, you might think the move lower was complete. But in our view, there’s still that pesky long-term moving average (in yellow) that has to be struck before we give credence to any talk of bottoms.

There’s also a gap that has to be filled (in blue) and the matter of a deeply sunk MACD indicator that has to climb above its midway waterline, a proposition of some weeks, at least (black box).

With that in mind, we’d give preference to the 190 PUT.

Give it a few months.

And crack the bourbon in the meantime.

Happy holidays to all!

And many happy returns,

Matt McAbby, Senior Analyst, Normandy Research

2 comments on “Was That the Santa Claus Rally?! (TSLA, SPX, DJIA)

  1. I don’t think the market correction will be more than 10%, if that much, because the FED will continue to support the market as they have doing since 2008. For a period of 6 weeks beginning at the Oct low the FED pumped in $34 Billion and the S&P rose from 1820 to 2079. These numbers (weekly $amounts) are well documented.
    Institutions can overwhelm the market for a short period of time but the FED will step in and support the market and the market will continue to rise for maybe 3 more years.
    If Matt is right about the big institutions getting their dose, I hope GS is one of the institutions!
    I monitor TSLA on a daily basis and I agree it will take awhile for the correction to occur.

    Very enjoyable reading!

    Have no serious fear, the FED is HERE and (they or it) will continue to support the market.

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