Q3 Trading

Stocks end the short trading day with a rally into the close, what has changed this week?


Please Note:  Original content published on December 28th, 2020 to the Q3Trading.com Blog.  It was subsequnelty edited, and republished on January 2nd, 2021 with page formating enhancements, taking out some insignificant and erroneous graphics.

 

Stocks end the short trading day with a rally into the close, what has changed this week?

 
Q3Trading.com
 
Weekly Market Focus Report
 
~ Special December 25th, 2020 ~
 
Christmas Edition
 
Dale Carnegie
 

Joseph Accepts Jesus as His Son

18 This is how the birth of Jesus the Messiah came about: His mother Mary was pledged to be married to Joseph, but before they came together, she was found to be pregnant through the Holy Spirit. 19 Because Joseph her husband was faithful to the law, and yet did not want to expose her to public disgrace, he had in mind to divorce her quietly.

 

20 But after he had considered this, an angel of the Lord appeared to him in a dream and said, “Joseph son of David, do not be afraid to take Mary home as your wife, because what is conceived in her is from the Holy Spirit. 21 She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins.”

 

22 All this took place to fulfill what the Lord had said through the prophet: 23 “The virgin will conceive and give birth to a son, and they will call him Immanuel” (which means “God with us”).

 

24 When Joseph woke up, he did what the angel of the Lord had commanded him and took Mary home as his wife. 25 But he did not consummate their marriage until she gave birth to a son. And he gave him the name Jesus.

 
Matthew 18-25
 
And a very Merry Christmas to you and your family!  I hope this finds you doing well, and enjoying some extra time this holiday time of year with family and friends.
 

Today we will be discussing the following topics: 
  • What is the most recent Weekly Market Sentiment?
  • What might our Market Cycle Volatility Trend be telling us?
  • The question now becomes:  Where might the markets go from here?
  • What are the most recent and updated trading signals?
 
Happy Holidays
 
Today is Christmas day.  The frenzied holiday shopping is complete.  The cards are all mailed out.  The turkey is cooked, or about to be...
 
It's now time to relax and enjoy the season!
 
 
Weekly Market Sentiment:
 
Bulls out pace the bears last week, as the markets drift higher, as price action ends up slightly, on a week over week basis.
 
The broad markets gain ground from its 3684.28 Monday open to a 3703.06 Friday close, for slight 18.78 point increase on the week.

 
Market Cycle Volatility Trend:
 
As of December 23rd
 
Green / Lower Volatility
 
Market Cycle Volatility Trend Week Ending Friday, December 24th
 
When looking at the Market Cycle Volatility Trend above, the chart shows us when the financial markets turned recently to a green lower volatility state last week again on Wednesday, December 23rd when the market cycle volatility trend went from a prior yellow transitional up trend condition to green, lower volatility relative to its past.
 
To summarize, we currently have a lower volatile market currently relative to its past, drifting slightly higher last week from its Monday open.
 
What might this be telling us?
 
 
 
Where might the markets go from here?
 
The question now becomes:
 
Where might the markets go from here?
 
 
After a Monday gap down, and close higher, the markets for the most part remained somewhat neutral last week with the bulls working hard to keep the markets moving higher by the end of the week with the MCT turning green by midweek on Wednesday.
 
With this type of sideways action, I can't help but to think that there is a higher probability that the markets are looking to break out yet again higher, as we appear to be in a somewhat tight trading range over the last few weeks.
 
We may continue to go sideways to up from here into the New Year, and if so, be on the look out for the traditional "Santa Clause" rally to be coming this week to end the year, with the previous market highs continuing to be taken out yet again, with the making of yet more all time highs.
 
Otherwise, if this does not hold true, we will want to be prepared to look for a slide back to the next, most recent, support level which is in the 3583.57 area just above the 50 period moving average.
 
Lastly, in the last 10 trading days, 6 of those 10 we have a yellow market volatility trend.  It's important to pay attention to this and not be blind sided, if the markets do indeed take a breather for another test of support when it happens.
Thanks for reading...
Today, I wrote about the state of the markets, including the current market cycle trend using my proprietary volatility trend trading charts, where the current market cycle volatility trend is, where might the markets go from here, a review of some recent bullish trading signals, including my watch list of top stocks ranked by highest volume.
 
Questions, comments, suggestions, or corrections?
 
Reach out!  Send me an email or chat with me on one of my social channels as I would love hearing from you.
Until next time ... Good luck, stay safe, and happy trading!

Disclaimer: I either recently had positions in these names, currently have positions in these names, or may be taking positions in any of the proceeding names within the coming days or weeks ahead.

 

Stocks, Options, and Futures have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to buy or sell stocks, options, and, or  futures.

 

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology has the benefit of hindsight, and is not necessarily indicative of future results.