Everybody knows that famous Christmas song but it is also true in the market. I am making a long list of potential positions for a buying opportunity in January and definitely checking it more than twice. However, until that buying opportunity arises we should remain in cash on the sidelines. We already have four short plays to capitalize on any decline.
As traders, we should also remain dormant. There is no fundamental reason to try and force a new play when volatility next week could be very high as a result of the pension fund rebalancing.
Tuesday is now my bet for Dow 20K.
This is not a trading newsletter. There is nothing I can recommend today that we buy for a potential 3-4 day gain and then exit. We should not trade unless there is a decent chance of a longer-term move. Be patient. There is a buying opportunity ahead in January.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays