Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed – no index moved more than 1%. Europe is currently mixed with an upward bias – no index has moved more than 1% there either. Futures here in the States are flat.
Yesterday was another good example as to why when the trend is strong, you buy and hold in an attempt to ride the trend for everything it’s worth rather than attempting to trade in and out. Even a boring, low-volume day can be very profitable, and if you exit with intentions of re-entering, you may not get a chance to re-enter.
The S&P has been up 13 of 15 days this month…a heck of a run, and it’s not sustainable. As the move continues, I get less interested in entering new positions because the risk/reward becomes much less favorable. Right now the objective is to manage what we have and try to resist selling until Jan so we can delay paying taxes. Many funds who are sitting on nice profits probably aren’t doing much right now. They don’t want to mess up their yearly returns. Things will get much more interesting when the calendar flips over. Patience is needed, and while patience at times is not easy, it’s much easier to be patient within a trend than within chop.
That’s it for now. No chart to post.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Dec 22)”
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Like Jason says, ‘the risk/reward is becoming much less favorable’
That tells me 2 things: 1. Start going into cash as the New Year
might bring a little uncertainy with it and; 2. if you do want
to go short start planning your strategy now.
Hey Aussie J: We haven’t heard from you lately. Are you sitting at
some sports bar drinking Foster’s Lager and watching CNBC down under?
From another one of my reliable websites:
They have an upside target of S&P 1263.
No doubt we’ll probably get there over
the next 7 to 10 trading days. HW
Hey Howard,
im still here ,but unloved as Jason said this is not a daytraders forum
ill make a few observations
— dax and ftse of irrational exhuberance –just below the .786 fib ,but close enough
–dji,spx-ndx and their corresponding futures all hit pit trader piviots–res 1 and 2 and have just turned down –after a irrational turn up to set the big boys up at opt strikes for the down leg
maybe the big boys have got a little impatient after their pump and want to dump now
who cares the 5 and 1 min trend is my friend
—i dont have the patients to be a longer term trader in a trader market
–1263 -71 sounds good to me Howard
—i have a dji top at NO HIGHER THAN 11600
BUT IT DOESNT MATTER WHICH WAY THE MARKET GOES IM HAPPY WITH THE WAY I TRADE
–EACH TO THEIR OWN
and im not knocking the way Jason trades,,well done
Jason has done a great job.
neal–i only follow what the big boys follow as i need them to push me into profit–or visa versa—they use the ticker tape or perhaps ur to young to know
doesnt matter to me if we go to 11600 or 12000