Fireworks Ahead! Happy New Year’s Eve to everyone! Enjoy tonight’s fireworks – they sure are going to be followed by more fireworks in the markets in the coming days! Most professional and institutional traders are not in the markets until the New Year. Models indicate subdued trading to continue until normal liquidity and volumes return (more…)

Squaring off Positions Into the Year End  The volumes today and tomorrow are likely to be mainly driven by traders squaring off their positions into the year end. Most professional and institutional traders are not in the markets until the New Year. Models indicate subdued trading to continue until normal liquidity and volumes return post (more…)

Thin Liquidity and Options Expiration Thinly liquid markets with volatility related expiration events (options expiration Friday) are known to lead to exaggerated or exasperatingly narrow moves in either direction to chop out weak hands/stops and it could be the theme for today’s price action. Models indicate the theme to continue until normal liquidity and volumes (more…)

Tread Lightly in this Light Trading Compulsive trading could lead to hazardous outcomes. It is even more applicable in low liquid markets and market days. Exaggerated moves likely in either direction to wipe out weak hands/stops until normal liquidity and volumes return post holidays. Structurally, we are still in the bull territory. A daily close (more…)

Bear – Nice or Naughty? Christmas eve shortened markets to experience low liquidity and spiky moves primarily driven by stop hunting of shorts. Exaggerated moves likely in either direction to wipe out weak hands/stops until normal liquidity and volumes return post holidays. Structurally, we are still in the bull territory. A daily close below 3180 (more…)