Fast forward from the 1st of three triggers for a crude oil short: We revisit a short setup in crude oil to discuss the entry as well as what we can do now that we are seeing follow-through. Structure before strategy and follow the trends. This is also a great blueprint for short setups in downtrends within the current market.
News over the weekend was not received well by the market heading into this shortened trading week. You’re probably wondering what to make of it? Let’s take a peek under the covers and see.
Let’s do what we do every Friday, and review the core markets and the periphery to see how things are aligned into next week.
Last quad witch of 2021 is in the books and it was a volatile one. The charts are all over the place next week, so let’s review the path forward for bulls (and bears) going into Monday.
With options expirations now in the rearview mirror, it’s more likely that the market can get to the work of window dressing after Christmas. Strong get stronger, weak get weaker. That’s December. The indices held up incredibly well overall and the oversold support in the NASDAQ and S&P do not rule out strength… we have one more pullback seasonally for next week so let’s take a look at the best “buy the dip” opportunities.
This market is ruthless and that maybe we don’t get a Santa Claus rally but maybe we keep those thoughts for January in this video I talk about how we’ve been trading the expansion in volatility and what I see for us next week.
Today’s NASDAQ weakness is not the beginning of a downtrend but rather an opportunity into the year end rally. There are opportunities in certain symbols reminding us that if you know where to look there is always something around the corner.
The US dollar, Euro FX, copper, crude oil, tech, and healthcare round out where we can continue to find trends as the year winds to a close. There is unlikely to be a broad-cased rally so it is even more important to focus on relative outperformers.
The big picture trend for most charts is still well intact, but there are others that show short term patterns that could correct further. Keeping this in mind, I know perspective and patience are two of the most important things we can work on as we round out the year.
