HO HO HO! Santa Claus rally did happen (again!!!). Perhaps, this seasonal phenomenon is really worth playing. Following the previous analysis in November, technically the markets were carving out bullish structure across the board with the fundamental backdrop of QE2 – therefore a few conditional (bullish/reversal candles at key levels) calls were made, which went down successfully. However, at this juncture probability increases for sizeable pullbacks and corrections in risk assets.

DesiHedge January 2011 MAJOR MARKETS (DOW, S&P, GOLD, OIL) Technical Commentary