A Rare Bird

The chart below, the daily chart of the ES futures (roll-over contract) shows where one old Wall $treet adage comes from. That adage is, "IF the bears have Thanksgiving... then the bulls will eat Christmas dinner." As you can see from the chart, prices declined before the typical third week in November (although Thanksgiving was a little later this year on the 27th instead of the more typical 23 - 25th). Then, they rallied into Christmas.

And prices continued on with the Santa Claus rally into the New Year. Hopefully, the turkey was not undercooked, or half-baked! Keep in mind, it is pretty rare to get an eight-month rally without so much as a 38% retracement.

But now, the Christmas ornaments (the red & green fractals) can outline some of the risks involved in this up wave. Yes, the wedge can get wedgier. But, the down (red) fractals can break, too.

Have an excellent start to the evening,

TraderJoe