Never mind Monday, worry about 2016.....

Everyone is fixated as to what will happen on Monday, there is lot to worry about changing dynamics in 2015, which is becoming  a losing year.....

We are getting so close to Christmas and there is no rally....

December traditionally is a strong month but its not ending that way so far....

We started December @ 2104 area, currently @ 2005, a drop of 99 points or down 4.7%....this is not how we want strongest month to look ......

SO......all of us are almost ready to close the books for 2015 in 6 trading days, and it is not looking pretty @ all.

2015 for the whole year is also looking a down year....to the tune of  down 4%

I am saying as goes 2015, so goes 2016 also....

SO what happens now ?

We have a support in S&P 500 around 1980 area about 25 points below.....

There may be a weak bounce back from there.......

For 2015 market has traded between 2116 and 1860 area......

2016 may look like 1860 to 1980 range.....

1860 may become a magnet for 2016.....

SO...how to position in this 2016 scenario......

Be ready for many test of 1860 area.....

I see 2016 where we may lose 7% in S&P 500.....

SO..between 2015 & 2016..we may have a back to back losing year with a combined loss of 11%....

2016.....could become a traders market, sell the rallies and buy the selloff over & over again.....

I see hope in energy, casino & hard liquor sector, thus an exposure in these sector is highly desirable for a long term approach.....

Look @ the big picture which has emerged since start of 2015, now free money from Fed is gone and banks may not know how to earn in a real world.....that has changed now and for 2016....

Good luck with your own understanding of TAPE and stock market going forward.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed