Here Comes The Santa Claus Effect

THE WEEK

We had been seeing the Market hit 52-Week highs all month.  Then on Wednesday the FOMC made its announcement on holding the interest rates at the current level.  The subsequent news conference where chairman Powell spoke was also very dovish in nature.  How did the Market react?  Prices shot up like a rocket on higher than normal volume.   Thursday and Friday saw a little profit taking.  Fun week for traders.

LOOKING AHEAD

There are no major economic announcements until closer to the end of the year.  With the dovish Fed announcement along with holiday SANTA CLAUS effect, I anticipate an up trending Market.  The trading volume may drop off a bit as focus shifts to family and friends.

I expect the Market to go down a little as the year is coming to a close.  Traders tend to close any losing trades so the losses show up in this tax year calculations.  Other that that, all I see ahead is smooth sailing and a quiet Market.

HOW AM I DOING?

Good but not the best ever.  I got distracted by some ugly major problems in a company I own.  Those problems have generally been solved so I will be much more focused on my trading moving forward.  Life happens to all of us.  Now that my head is back in the trading game, watch out.  Next quarter will be on fire and a lot more fun for me and you!.

For this week’s Thursday webinar, I decided to go over some of the available tools

used to measure and understand the Market such as Relative Strength and the MACD.

Our DEEP DIVE this week

ADD SOME TRADING TOOLS TO YOUR KNOWLEDGE TOOLBOX

Note: I will also have a couple of great prizes to giveaway!