Friday’s market opened weak, something we haven’t seen in a while. Santa arrived on time at the open and bolstered us up higher only to see the rest of the anemic trading day drift lower. Our closing MiM lied to us, setting up with a buy indication only to flip on the actual reveal and set up selling into the close. We are gapped up right now as of this writing waiting to see if we have a directional trend as we trade the last two days of 2019.
December has been kind to the bulls and has downright waterboarded the bears. Trying to move higher into the end of the month/year is proving difficult as the market and Santa at this point appear to be tired of winning. December gains from Dec. 2nd open until Friday’s close has been about 2.9% with the difference between the December 3rd low and the 27th high clocking in on a decent 6% gain.
Economic Calendar
MrTopStep: For Traders By Traders
David Zimmer
The S&P futures (ESZ19: CME) closed on Friday at 3240.02, a new record high, about seven points below its opening print of 3247.23, after closing Thursday at 3239.91. Its thirteen-point trading range (3234.37 – 3247.93) gave traders little reason to be involved until after the markets had closed. It is going to be an interesting couple of weeks, watching the Federal Reserve pretend it has a handle on the “cash repo needs” so hold on tight. The direction of the markets could swing in either direction with volatility entering the equation as many traders have taken the last couple weeks off.
In the past when the Fed fueled the markets with “cash” the resulting movement in the ES was higher. This time however there seems to be a denial in that the Fed is enabling the big banks to be able to meet strict regulatory criteria. In essence, the underlying currents suggest that interest rates would be much higher but for the flooding of the markets with hundreds of billions of dollars of cash daily. With that in mind, I’ll reiterate what I’ve learned from Danny: until the trend is broken don’t fight the tape.
Today’s charts (to the exclusion of the last three) illustrate the effects of supply and demand. Remember, commodities are a reflection of just that. If there is more of something on the market, then chances are prices will go down. Such is the case for the Dollar. If there are more Dollars, then they should be worth less. Pronounced continuation of the trend should continue to bring the price of the oversupplied commodity lower.
For months we have been looking for reasons for the Dollar to decline more so for an economic result; a lower Dollar in an increasingly manufacturing-based economy should result in a resumption of increases in corporate earnings. In the interim, we’ll stay short the Dollar and long the Euro.
Something very good is happening at MTS. This was confirmed to us over the weekend as we had a couple of requests from those who utilize the tools that many of our fine contributors offer asking how what we do at AMS can augment these tools. It is music to my ears. I’ve felt that Danny and Marlin offer a perfect thread for this type of interaction to occur.
AMS will be there when you ask; maybe not this coming week as we’re taking time off just like many others, but the many requests we are receiving simply make sense. In addition, upon initial review, it appears that just learning how the AMS tools work addresses some of these requests. Again, not this week but in the coming weeks we are going to figure out a way to teach you how to implement the AMS tools as integrated with others on the MTS site. In the interim, here are a couple of charts on some of the other commodities we are following. Have any questions give shoot me an email but know that for the next week to ten days finding me is going to be a little tough to do.
With that in mind, for the next couple of days you can buy an AMS Lifetime License for $1,497.00 (regularly $2,997.00). Keep in mind that as of the end of the year AMS will no longer offer Lifetime Licenses (Annual License @ $997.00) so take advantage of this offer. We all at AMS and MTS appreciate your business and look forward to earning it every day. If you want to hear more directly from me let me know at david@amstradinggroup.com.
Keep emailing me at david@amstradinggroup.com and let me know what you want me to highlight as time allows. In the interim thanks for reading what we post. Enjoy your trading week and our best to all for a happy, healthy new year.
Closing Prices
In the Tradechat Rooms
The MiM
Friday’s MIM setup as a buy all afternoon long with a suprise sell at the end of the day.
Starting January 6th, David is hosting a 2 week trial for free. He usually charges $99 for the two-week trial because he puts real-time and effort in with each trader to ease them into his style of trading, which is very planned, masterfully executed and easy to understand. I am a big fan of David and his style of mentoring and tutoring. David trades live each day. This is an example of this opening range trade on NQ last week. David does not trade for the sake of trading, he patiently waits for the markets to set up and executes his trades with simple rules and a calm style. Join David for two weeks and let him help you with your trading.
http://polaristradinggroup.com/ptg-free-trial/
Video of the Day
Video recorded live of David Dube’s opening range trade from the Polaris Trading Group. If you are interested in joining his free 2 weeks peek into trading the Polaris way join here:
Market Vitals Technical Analysis
As always, please use protective buy and sell stops when trading futures and options.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Decisions to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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