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[/et_pb_text][et_pb_text _builder_version=”4.12.0″ _module_preset=”default” global_colors_info=”{}”]Alright, folks want to revisit a trade we discussed earlier this week, and that was in the NASDAQ or the Q’s. You see here, I was talking about getting short this market based off of a couple of key things here, we had bearish divergence down here, as you can see on our bottom indicator, as well as a 123, top in play. You see, we’ve met that objective almost to the tick bounce and are now looking to put in a potential 123 bottom but if you look over at the daily chart, it looks like there’s potentially more downside to come. So now we’re on the daily chart. This is another chart we analyzed, not only are we putting in a one to three top, as well as bearish divergence, we also have a head and shoulders top. And this looks like a clear move to the downside. If we flip over to the other indices, we’ve actually already met the 123 top objectives. You can see here on the diamond or the Dow Jones, as well as the Russell here i w m, already met their objectives. And lastly, we’ll go to the spy or the s&p, you can see we’ve met profit objective one looks like we’re going to be headed down to profit objective two. Now of course, the Santa Claus Rally is what investors often associate with the final month of the year. But before we get too bullish here, you must first consider navigating the tax loss selling period that is typical. In the first half of the month, the s&p has shed just over a 10th of a percent in the first 15 days of the month, as traders and investors are looking to offset their gains cut their losers and overall rebounds the books ahead of the close of the calendar year only been higher during this timeframe or the first 15 days 54% of time over the last 50 years. You compare that to the back half of the month associated with the holiday trade and in return average is 1.55%. And positive results have been achieved 78% of times over the last 50 years. So the better time of the month to be exposed to risk should be very clear. So the strategy that will likely focus on that has been effective over this time frame is to buy areas of the market that have been beaten down the most by tax law selling pressures that are going to set yourself up to be exposed to the end of a month rebound that we typically expect now will this hold this year, who knows we’re entering a final month here. And the backdrop is eerily similar to what it was last year at this time. COVID cases are once again on the rise yet the equity market is sitting at or near record highs with the exception of the pullback we’ve seen over the last few days. So I would certainly be cautious on long. There are certainly some stocks that have now become discounted, but we will expect to see some more volatility ahead, especially with the headline risk that we’re seeing each and every day. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
