The market has continued to be very volitile the last few days and volume has been light due to the holidays and the early market closings. We saw the worst Christmas Eve in stock market history and a huge rally the day after Christmas. I have been busy with family and have not had the time to focus on trading. I feel that focus is very important in this market and trading without a solid plan is asking for failure.
This has been a unique market and nothing has fundamentally changed so I don’t see the beginning of 2019 as being a significantly different environment. We are still trading below the major moving average lines and struggling to break above them. Until we do, I think I’m mostly a bear and will be looking to trade as such. This may mean holding cash and waiting for my entry price to come to me and/or trades of inverse market ETFs. It will mean that I’ll be trying to make long trades quick and easy because hold too long will decrease probability of success.
The market is in ‘no man’s land’ right now. We aren’t near any previous turning points and volume is coming back in. I’m going to sit on my hands for now.
Maybe take this week to start working on those new years resolutions! I do my best work at the gym anyway!