We are now in the holiday trading season. The Monday after December options expiration is usually the beginning of low volume slow trade, lasting until the first trading day of January when volume explodes higher. I will trade accordingly, expecting much less volatility and will be making few trades given the few opportunities on hand. If you are long, stay long. Those who are in cash should buy any dips down to ES 1960, or SPX 1967. There should be an upward bias during this slow period, but nothing like what we saw the last 3 days.
This is a benign period, both seasonally, and due to recent history of strength for up to 2 months after a V bottom. We had that V bottom last Tuesday. So we should be pullback-proof till at least middle of January.
Subscribe to:
Post Comments (Atom)
Posts
4 comments:
What's your take on gold and gold miners? Some gold miners like ABX are at all time lows.
I don't like gold or the gold miners. It does look like a lot of tax selling is exacerbating the downtrend, so I expect a bounce in early January. But it should only be a small bounce.
Looks like new lows coming for crude oil. Waiting for new lows and reestablish positions. Anywhere from 48 to 50 on WTI is my guess. And I think that will be the low for good. Geometrically and visually.
Geometrically and visually. How about aethestically? LOL. I think crude oil bottoms in late January or early February. That's the seasonal lull before the refiners ramp up production of gasoline for driving season. That should lift crude higher in February into May.
Post a Comment