November 20th was a recent low in all three major indexes. All three indexes have rallied off their lows.
- Dow rose about 4.75%
- SPX rallied 5%
- Nasdaq rallied roughly 7.5%
Observations:
The indexes are in no man’s land. If I was not already positioned after the pullback lows of the 20th, I would not be looking for an entry long on the in indexes. They look better, but the indexes themselves are still within a congestion or consolidation zone.
Individual names:
We’re in a drawdown and consolidation phase of the market, earnings season is over, the holiday is in full swing. I do not expect to hear any major market moving news coming from anyone other than J. Powell on December 10th.
Companies will continue with their press releases like Capricor (CAPR) yesterday with their positive phase three results. Excluding fresh news plays, such as CAPR, I’ve been observing much easier trading to the short side. Longs do not appear to be committed with follow-through and volume. I prefer easy money trades over hard money trades.
The recent high:
- Dow on November 11 at 48431.57
- SP500 on October 29th at 6920.34
- Nasdaq on October 29th at 24019.99
Econoday Calendar:
- ADP employment report 8:15am ET
- Import and export prices 8:30am ET
- Industrial Production 9:15am ET
- EIA Petroleum Status Report 10:30am ET
I do not expect any of these reports to materially move stocks in a way that generates more trading opportunities with lower risk and greater probability of follow through.
Kroger is reporting earnings this morning with a conference call during market hours – let’s see how this plays out.
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