Friday our weekly levels continued to highlight opportunities on both the long as well as short side for S&P 500 Emini Futures Day-Traders.
We only have 3 1/2 trading days this week, and our final pre-holiday broadcast will be Tuesday. Price action will most likely be somewhat subdued, but these are the areas which if reached, are where we believe the market will be forced to make decisions. Our bias indicator turned bullish Friday afternoon and remains such in Sunday night's early trading. Should prices spike on the London session to the 1104/1105 area, we will be on the lookout for signs of weakness and a potential reversal.
One thing to remember, the markets in general are up over 60%.
The question to ask is "How will this effect tax selling?".
Will investors and traders choose to wait until January 4th to take profits and in doing so, delay capital gains taxes for 15 months? One thing is almost certain in our opinion - Equities that have failed to perform in this broad based rally, will most certainly be sold to offset any tax liabilities investors are faced with. This line of thinking does present the basis for the potential of a sharp correction in early January which could in turn lead to some potentially excellent buying opportunities in the first quarter of 2010.
And let us not overlook this warm and fuzzy tidbit -
Goldman Sachs employees will divvy up over $19 Billion in Christmas bonuses in the worst economy since the Great Depression. Their largest bonus payout in history.
All I want for Christmas is to be half that smart.
Blessings and Merry Christmas!