Summary

As we enter one of the most positive times of the year for the stock market, from December 19, 2024 to January 2, 2025, we note that the market has not been as kind to the stock average as it was in many sectors from the latter. part of november Some blame it on selling at tax losses, which is likely. But there are sectors and indices falling from all-time highs, or at least 2024 highs, so there can’t be any tax selling. Tuesday’s NYSE breadth was -1,611 as streak of weak breadth continues. Total 12-day NYSE advances/issues fell to 39%, one of the weakest readings in two years. And once again the weakest indexes were the NYSE, the S&P 400 and the S&P 600. We see some interesting Commitment of Traders (COT) data as well as some disturbing data (just depends on which market). We mentioned earlier that the combined hedge position of the main index was quite bearish, and when we look at two of its index components, we find that the hedge positions of the S&P 500 and the Nasdaq 100 are low, as smart money hedges are near or near. their more negative futures positions. At the same time, the big speculators (hedge funds, momentum junkies) are extremely bullish on their futures positions.