November Gap Closure

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Six days of this childishly-named Santa Claus Rally have accomplished the remarkable achievement of almost perfectly sealing the Thanksgiving price gap on the small caps. Whether or not it gets perfectly sealed (or, indeed, violated) remains to be seen. As I’m typing this, however, the small caps certainly seem to be catching their breath, at a minimum. The precise value of the price gap is 227.85, less than a percentage point from today’s peak.


A similar situation can be seen in my still-beloved EFA, the overseas markets. Of course, gaps aren’t as meaningful on foreign markets as pure U.S. markets, because their prices are based on different exchange times. All the same, we’re at the midway point, and I don’t think there’s any gas left in this tank.