Recap Long bias from last week was simple but proven not easy for many. Dow just popped back up to Y-0 and went sideway. Then it took off without filling the gap below. Made new year high as expected. Closed the week above Y+1 and midpoint.
Outlook Will be difficult two weeks to trade if you want to force a play during this time. 2 reasons why it will be difficult.
First, post FOMC week almost always reverse everything happened after the announcement thus Y-0 is in play in coming 2 weeks.
But we are entering the low volume updrift time window to new year which is usually bullish (mildly).
I do not usually trade in the last 2 weeks of the year anyway. Given the conflicting setups, if we get a move, it will be very violent. Hands off is probably the best option.
Following is the daily composite average of Dow during election years since 1932. The chart shows the average values from the first trading day up to ...
Lawrence's Comment
Recap
Violent reaction to eurozone problems sending US dollar higher against all majors. Tagged Y+2 and closed the week above Y+1.
Outlook
Unlike other majors, dollar yen is not breaking out ...
Dow 30 Dec 23 to Dec 27 Outlook
Lawrence’s Comment
Long bias from last week was simple but proven not easy for many. Dow just popped back up to Y-0 and went sideway. Then it took off without filling the gap below. Made new year high as expected. Closed the week above Y+1 and midpoint.
Outlook
Will be difficult two weeks to trade if you want to force a play during this time. 2 reasons why it will be difficult.
First, post FOMC week almost always reverse everything happened after the announcement thus Y-0 is in play in coming 2 weeks.
But we are entering the low volume updrift time window to new year which is usually bullish (mildly).
I do not usually trade in the last 2 weeks of the year anyway. Given the conflicting setups, if we get a move, it will be very violent. Hands off is probably the best option.
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