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December 2022 - Monthly Outlook - Current Market Status

December 01, 2022
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November was a positive month in the financial markets, with both stocks and bonds gaining in value as interest rates declined.  On the final day of the month, stocks (basis S&P 500) finally eclipsed it’s downtrend line since the start of the year (see purple trend line and pink circle on chart below).  This trend line served to stop previous rally attempts this year. 

The question right now is, can the bulls maintain these levels and then push the market higher or will the bears roar back and drive the market down as they have done several times this year.  That’s why I included the image below – it is a battle between the bulls and the bears.

If the bulls take charge we likely move up to the 4,350 area (grey line on chart) before hitting the next battleground.  If the bears stop the bulls here, then we likely see a decline back to the 3,500 area.

The bulls have a couple of things going for them.  December is historically a good month for stocks. There are signs inflation is starting to ease up and interest rates are trending down.

Personally I’m rooting for the bulls and a Santa Claus rally.  However, we are waiting to see who takes charge right now before following the herd.

 

 

I hope your Thanksgiving was wonderful and wishing you and your loved ones a very happy holiday season and a Happy New Year.

 

December Calendar of Events   (comments and additions for future months are always welcome)

  • December is Universal Human Rights Day.  Let’s pray that all people, regardless of race, religion, gender, or nationality  can learn to treat others as we all wish to be treated.

 

December 10th           Human Rights Day   -  I have cherished the ideal  of a democratic and free society... it is an ideal for which I am prepared to die. - Nelson Mandela

December 19th           Christian’s birthday

December 18th           Hanukkah begins -   Chag Urim Sameach - Wishing all peace and light this holiday season

December 21st                 Winter Solstice    -       The shortest day of the year and the start of winter

December 25th            Merry Christmas – have a wonderful holiday.  Let’s all remember the true significance of this day - the birth of Christ. 

December 26th            Kwanzaa starts – let’s all celebrate African-American culture

 

Best regards,

Jim

 

Sources: StockCharts.com

 

Although information herein has been obtained from sources deemed reliable, its accuracy and completeness are not asserted. All opinions and estimates included in this report constitute the judgment of the financial advisor as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

 

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