Editors Note:

The major indexes rebounded to resistance but none of them broke out. While that could happen on Thursday if the bullishness continues, the retirement fund flows into the market should be behind us. Tuesday and Wednesday were the last two days of the 7 day Santa Rally period. Thursday could see either a failure at resistance or a breakout. We have had two trading days this week and that is still not a trend.

I went through my list of potential plays and there was nothing that simply had to be played today. There were two kinds of charts. Some small caps had 5% to 10% spikes over the last two days and took themselves out of contention for a new play in an overextended market. The second type was the S&P-500 clone. Like the chart below they had rallied back to resistance but then stalled.

I know it is boring not to have any new plays but we need to be patient. When the market does not move in the expected direction, a lot of people begin to get nervous and I am sure we are seeing some short covering from those impatient shorts. I am not going to recommend anything for Thursday because 2017 is only 2-days old. There is no "must trade by date" and we need to be patient.



NEW DIRECTIONAL CALL PLAYS

No New Bullish Plays


NEW DIRECTIONAL PUT PLAYS

No New Bearish Plays