We have some routine seasonal action taking place. There is generally positive tone, some pockets of wild momentum and plenty of speculation about what the new year will bring.
Most of the bears that have been expecting disaster are still expecting disaster but the bulls have gained a little additional optimism as management at a number of companies express optimism about the impact of the new tax bill.
A good example is Herman Miller (MLHR) , which announced earnings last night. The stock was down initially, but after the company guided estimates higher due to the new tax law, it broke to new highs. Earnings season is coming up in about a month and I expect we will see more guidance like this. It does not appear to be priced into the market to the degree many of the skeptics think it is.
It looks to me like trading is starting to slow in front of the long holiday weekend. Friday will be a prime day for office parties and many traders will be looking forward to shutting down, even though they have good action lately.
I am maintaining an index short as I think a bout of profit taking and tax selling is likely to hit next week. I'm optimistic that trading will continue to offer good opportunities, but I'm going to make sure I protect recent gains.
This may be a short-term Long Island Ice Tea (LTEA) top in some of the more speculative bitcoin-related names, but if we are selective, there will be still be some good trades. Don't confuse the action in the indices with "holiday trading."