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Make sure to enter out “Pick the Tick” contest below. First of all, Happy Thanksgiving from TTC! Here's hoping you have plenty to be thankful for this year, both in trading and away from the markets. Watching the events unfolding on Wall Street that are obviously painful to so many, and to so many across the country who face losing their homes, it's gratifying to know the hard work we do helps create more prosperous outcomes for members and readers. In lieu of an update this weekend, I thought we’d just do a quick recap and make some important announcements, like the start of our annual “Pick the Tick” contest. More on that in a bit. Last weekend’s update made it clear we were continuing to expect sharp upward moves from this market with a Santa Claus rally to new highs still a possibility. But, it also said the previous Friday's close left it unclear whether there was still one more quick low first, but that we had important levels that will decide the trade for us. Monday’s gap down kept us in the previous week’s range, so it wasn’t yet a decisive answer. Losing that area had us thoughts of a rally on hold until we could find the right support level. Sure enough, the day ended with a snapback that took the futures all the way to 1450 in overnight trading. Indeed, this market can still rally when it needs to. The rest of the holiday week proved to be very choppy as the tape was bombarded by random events and the release of Fed minutes with new forecast data. The key at all times was to fade our important numbers and look to chase a rally that actually starts to get momentum. This is the best way to avoid getting chopped up while keeping an eye for a potential upside breakout.
As you can see from the charts above and below, only traders made any money this week, and anyone too greedy to take profits at our key levels wound up getting burned. Playing the numbers, however, allowed us to make money on both ends of the range.
In the big picture, not much was resolved this week, and though the tape looks ugly, we’ve seen worse. At this point we’re flat, unbiased, and will continue to let the market dictate our trades instead of forcing positions on an unwieldy and undecided market. Members have 2 levels that will have us looking for an explosive north as well as some must hold support areas. Now, as we take some much deserved time for ourselves and our families this weekend, you can take the opportunity to participate in our annual "Pick the Tick" contest where you can win prizes for predicting the closing price of the year in the major indices. If you haven't seen it yet, click here for your chance to name the end of the year level in the Dow, and to see the other entries in the competition. The closest pick in each index will win a five-ounce silver bullion round with our custom "Unbiased Trader" TTC design, pictured below. The design was made courtesy of the Northwest Territorial Mint.
Again, have a happy
Thanksgiving! See you next week! Have
a profitable and safe week trading, and remember:
Market
analysts are always welcome to contribute to the Forum or newsletter. Ideas from this update are provided as general information and are not investment recommendations. TTC accepts no liability whatsoever for any losses resulting from action you may take based on the contents of its charts, commentaries, or price data. Each person must do his or her own research to determine the appropriateness of taking a position in any financial or commodity market. If you are uncertain, please check with your licensed financial advisor or broker prior to taking any action. Securities and commodities markets inherently involve risk. CONTACT
INFORMATION The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
