I think the first of the month should be called Free Money Day as everybody knows buying today is free money. As I wrote yesterday the contrarian in me wants to fade this move but my practical side tells me to sit it out.
Every year we hear a lot of talk about a Santa Claus rally and yet it still manages to occur. That is the reason I am not fighting this first of the month bid but if there were ever a month where this were to fail it is this one. There has been more chatter about the first of the month than I ever could recall plus the S&P 500 has rallied over 35 points in a relatively straight line.