Wednesday, December 7, 2016
Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,862 Blog Posts

Fading the Faders

Here’s the setup.

A non-financial media outlet, like Drudge (among others), is headlining with worries of year-end tax selling exacerbated due to “Fiscal Cliff concerns.” Click on the above graphic to enlarge. Essentially, Drudge is fading the idea of a cheerful Santa Claus rally.

On the flip side of the coin, I see this evening that (along with The New York Times) is headlining with the title:

Big Money Bets on a Housing Rebound

In this case, you have the financial media fading all of the “shadow inventory” espousing housing bears.

In both instances, I am inclined to fade the faders–Drudge and CNBC/NYT, as I expect the housing stocks to underperform in the coming months.

We should of course know how this plays out, soon enough. However, the whole year-end tax selling on steroids thesis is a bit too popular these days in the media for my taste.

Also, chessNwine’s Weekly Strategy Session has been published and sent out to members this week. I am confident that you will find this week’s version to be of tremendous value in your weekly preparations for the market. It is never too late to sign up at a very reasonable price, so please click here for more details about subscribing or even making a one-time purchase (the subscription plans offer much better value over time).

As a reminder, members of 12631 receive the Weekly Strategy Session at no additional cost, as it is included in their membership.

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  1. Steve Place

    you beat me to the drudge screencap by about 10 minutes :p

  2. My3Sons

    Yes Chess. I thought the same with the NY Times headline, hence short $HD and $SHW.

  3. flicker

    Thanks for the Phil Ivey video. The man has balls of steel.

  4. Dr Fly

    Ivey has a deal with the devil.

  5. Grey Poopon

    Heh nice