Tuesday, December 23, 2008

Holiday Week Trading Still Adrift

The absence of traders and news will probably continue the Holiday Drift Trading today. There hasn't been a whole lot to do with the market, so I hope you are enjoying this Christmas week with family or friends. There were a couple of nice intra-day Bear Flag setups yesterday, but the overall direction of the market is still a light volume drift (mostly down so far).

I don't have much to say about trading other than this: if you are directional trading options, you will still want to look only for good intra-day signals and take the short swings.

Here is a chart of the SPX:
(click on image to enlarge)


The Bulls decided to hold the 850 (857) area for now. the Wedge has been busted, so the market is at risk for a selling period back down to the 820 area, but I doubt there are enough traders hanging around to accomplish that kind of momentum today. With the pre-market futures up slightly, it's possible that the market tests the 880 - 885 area early in the day. A break above 887 would lead to the possibility of a move back up to the 920 area, but again, there probably aren't enough traders hanging around to accomplish the move. Maybe we will see a light volume bullish drift today, but it may be more fun/practical to spend time with family or friends today than it will be watching the paint dry on Wall Street.
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2 comments:

  1. GarrettDecember 23, 2008 at 6:34 AM

    Thanks as always Dwight, your teachings and insight has made this a great year. Thanks to all who post with help and thoughts. Just having this community is such a huge help with all of our trading. Happy Holidays everyone and we'll catch ya next year.
    Garrett

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  2. LaurieDecember 23, 2008 at 7:36 AM

    Gang,
    I encourage you to look back at the history of this blog. It will impress you on two points. One, the amount of ground we covered; questions asked and answered; learnings. Two, the accuracy and honesty that have been the hallmarks of Dwight's presentations of how things work (or don't) in the markets/economy.

    I've got a (corny?) trading analogy for anyone who's studied a foreign tongue. It's always easier to understand before you speak. And, even when you get the vocabulary, verbs, etc. down, there are those unique phrases called idioms. A girl from Honduras we hosted fretted over meanings of "throw up", "throw out", and "throw in the towel," phrases I'd guess native English speakers rarely confuse.

    To sum up, there are many teachers who can share the vocabulary of the trading language, but only Dwight can help us understand the idioms needed to become fluent speakers in the trading culture. Thank you, Dwight.

    Enjoy your holiday, merry traders! Be safe out there you who live in the snowy climes.

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