With the first phase of a trade deal out of the way and the last FOMC meeting of the year pundits turn to the impeachment vote. Whether it has much of an impact to the stock market remains to be seen. Friday’s market had small caps the big losers on the session while the NASDAQ led the day. Volume was lower, but we are in an interesting territory. We will need to make sure we are acting within accordance to our trading rules. No need to jump outside our rules and go rogue simply because we are at all-time highs. Any signs of distribution piling up will certainly be a warning sign along with leading stocks. This will be the last full trading week until January 6th, 2020. Let’s close this week out strong heading into the Christmas and New Year Holiday.
Something to keep an eye on is inflation. GLD is percolating here holding $138 level. Gold stocks like AEM and GOLD are not the best-looking charts but appear poised to push higher. We have no knowledge of any surprise inflation data or anything else. However, when looking at price action there seems to be a positive momentum behind gold. SLV on the other hand is a bit more volatile. Speaking of the volatility the VIX has been hit hard the past two days and resting around the 12.0 level. TVIX is at a new all-time low. Investors simply by way of options not predicting future volatility. This certainly is an interesting market. Regardless of what you think of it we cannot wish for something else.
We can list out a few things we would wish this market would do. One would certainly be IWM gaining a bit more ground on the larger indexes. As for SPY and QQQ the 10-day moving average is a great short-term moving average to keep an eye on as we head into the last few trading weeks of 2019. Hard to believe it is already 2020. Just last year many thought we were on the verge of a large stock market crash. This year we have something different. Many still believe we are going to experience another large market decline. Most are sitting on the sidelines in disbelief. We are quite long this market and if it turns south, we have our stops in place to protect us from major damage. We will, however, take advantage of what is left on the upside and will not be left behind. Stay in the game, stick with Big Wave Trading.
We hope you had a great weekend. It is important you enjoy your time and reset for the trading week ahead. Good luck with your trading this week.
