the markets close the year strong making all time highs, what's next for 2021?

The following was sent to subscribers of the weekly Markety Cycle Focus Report on Monday, January 4th, 2021.

Q3Trading.com

Weekly Market Focus Report

~ Special January 1st, 2021 ~

New Years Edition

This past year has been an exceptionally challenging one for many of us. We can only hope that with the dropping of the New Years ball, it will ring in a new beginning, with renewed hope for each of us.

I hope this finds you doing well, with all your New Years resolutions in place, perhaps getting some extra rest over the long weekend, now ready to kick off the upcoming trading week with some terrific new winning trades!

I was chatting with a friend of mine over the holidays, discussing New Years resolutions. I liked the one he shared.

I hope I don't butcher it, as I am writing this, but I think it was simply, "To be more thankful or grateful with what I already have."

This sounds pretty good to me. Maybe it will resonate with you as well?

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 my Top Trading Tips, including the most recent and updated trading signals?

Let's Go!

"The quality of any man’s life has got to be a full measure of that man’s personal commitment to excellence and to victory, regardless of what field he may be in."

Vince Lombardi, football coach

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 3723.03 Monday open to a 3756.07 Friday close, for slight 33.04 point increase on the week.

Market Cycle Volatility Trend:

As of December 23rd

Green / Lower Volatility

Market Cycle Volatility Trend Week Ending Friday, December 31st

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 a week ago from last 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?

The question now becomes:

Where might the markets go from here?

After a Monday gap up, and close higher to start the week, the markets for the most part remained somewhat neutral again last week with the bulls working hard to keep the markets moving higher by the end of the week with the MCT continuing to stay green all week. Friday saw the largest one day move from the open to the close, with the bulls telling us they are firmly in control as the SPX made another final all time high to ring in the new year, giving us our anticipated "Santa Clause" rally as discussed in last weeks Weekly Market Focus Report, and let go of the 2020 putting it now squarely in the rear view mirror.

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 top ten top stocks watch list 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.