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Santa Claus Rally Call Updates

On October 18th, 2021 Turbo Trading's Head Trader, Robert Knight, MBA made a major market call by saying the Santa Claus Rally had begun early. Let's review his reasoning and his predictions, and check in on how the markets are doing now, 10 days later [October 28, 2021]. What are the results of his claim, so far? We will start with what Mr. Knight wrote in the Trading Room on October 18:

Next, this is an excerpt of his original article about the Santa Claus Rally.

"The SPX made a sharp reversal, gapping up 2 days in a row moving 145 points in 3 days. It broke through the declining tops line and through the key moving averages. The index has also broken the neckline of a mini reverse head and shoulders pattern. There is lateral resistance at 4487. Through that level and we should see the SPX challenge the ATH. It appears that this move is the start of the "Santa Claus" rally and we should see stronger markets now until the end of February."
To back up the analysis he goes on to say, “The DOW triple bottomed around 33750 and was forming a wedging pattern. It has surged the last 2 days trading up through key moving averages and lateral resistance. Look for DOW to test ATH over the next month and trade beyond.

This move of the DOW and S&P is confirmed by the DJ-Transportation. DJ-Transportation broke out of a 4-month consolidation and traded up through key lateral resistance at 15000. The index double-bottomed around 14000 and has now broken out of a down-trending channel. The 20-day ma.a has crossed the 50. This move by the DJ Transportation is a Dow Theory signal that the trend in markets has changed. Look for all the major indices to trade to new ATHs by year-end."

So, how have things panned out so far? Let's check out a couple of tweets Robert Knight made on October 27, 2021:

$MSFT - with a $308 entry the stock looks to test our $330 target in 1 week!
$NVDA tags our $250 target from $230 entry posted here October 18

Ah ha! Looks like rallying to me! The next day [October 28,2021], we see this on Twitter:

"On October 18, 2021 I posted a blog 10 days later $APPL tags our $150 target, $GOOG is up $150, $MSFT just short of $330, $NFLX from $640 trades to our $660 and nearly $680 targets, $NVDA from $215 tags our $240 and $250 targets. As I said, the Santa Claus rally has begun!"

Check out what Robert Knight had to say on Twitter during November 4, 2021:

Massive wins for our Turbo Trading Members from my Oct 18 call on #FAANG stocks. Most them tagging our targets and more.

There you have it. Preliminary evidence that Santa's sleigh is already jingling on the horizon. What do you think? Answer in the comments.

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