S&P 500 at 1300.

We think market is ready to take on 1292 and possibly 1300 as soon as tomorrow.Technically we are in a overbought zone,but better then expected job report tomorrow can take market to 1300 level.We are waiting patiently and will short the market at 1300 levels.

Guest Post:Do We Get a Year-End Rally Or Not? Santa Dukes It Out With Mr. VIX .

Market cheerleaders see a rally coming; Mr. VIX is issuing a sell signal. Looks like the next few days will be a grudge match between Santa and Mr. VIX.

Everybody wants a Santa rally in stocks: Wall Street, the financial media cheerleaders, mutal fund managers, politicos, pump-and-dumpers, retail investors, gamblers, grifters and even Mrs. Santa all want a year-end stock market rally.

Santa's willing, but he's going to have to get past Mr. VIX.

The VIX volatility index is a remarkably accurate indicator of market highs and lows. You can see how well extremes in the VIX line up with highs and lows in the S&P 500 in the charts below.

I've marked the "Highs/Sells" in red lines and the "Lows/Buys" in black lines.