Are you prepared for holiday trading?

How to spot market anomalies [image] Being prepared to me means that at a minimum I have a - Projection of the weekly range for the S&P, - Plan how make money, and - Protection process of capital. Let’s cover them all by starting with #3. Capital And Risk Preparing for three weeks of holiday trading is very important as markets and people have less predictable and more distracted schedules. Add to this the entrance of a new year and tax selling indicative of this season for even more reasons to be ready to protect your capital. Price action and player involvement will be skewed. This can show itself through price gaps and other volatility. It’s nothing to fear – It’s just something to prepare for. Many professional traders take this time to hone skills and make money. Consider taking profits earlier to take advantage of action that might not be repeated before the end of this bear market year. Where Is The Market Heading? After (another) tough week of FOMC and Retail Sales, it’s hard to imagine the market trading up for the week but put any bias aside. Multiple directions could evolve. My thoughts are that the market will trend up or sideways based on technicals. The seasonals also point to an up week, but Scrooge has been in control all year which has been the strong hold. The arrows show a possible path based on weekly ATRs (average true range) of about 200 points. Either way, the projected path remains down – This too is subject to bias, so stay nimble. [image] When there’s blood in the streets and the pressure is down in the short-term, mid-term, and long-term (year open), one thing I look for is anomalies. Many things are “back of the mind” attention worthy. One minor example is the price action on LEN (Lennar) and ORCL (Oracle) compared to the S&P. Both had earnings last week, but Costco, FOMC and Retail Sales took a lot of headline space. Lennar, by the way, confirmed on their conference call what I’ve been observing… in my own hometown. Looking at the following charts. Notice some interesting visuals? Take your time. LEN, ORCL, S&P Futures Weekly Charts – Time Period: Six Months Approx: [image] Some might warn “Yeah, but…” – And that’s fine. Appreciate it, really. But that's not my point. Companies are in business to make money, and some are run by some really smart people who are masters in this “Age of Empires” world. They are not looking at moving averages or other indicators on the charts of their stock. By the way, I’ve been trading ORCL during this last run up because it appeared on my scans, trades set up, and money is green. Making Money And that is my point. Every week, regardless of what the market is doing or what’s making headlines, there are opportunities. The key is confidently and consistently applying a proven process knowing that strike outs occur, but the success enjoyed because of base hits far outweighs. Think and win! Celeste Lindman Ask The Pros P.S. Get into my FREE, private Telegram channel where I share trading tips like this — and more — nearly every day! [Click here to join!](=) RISK DISCLAIMER There is a very high degree of risk involved in trading. Ask The Pros and all individuals affiliated with this site assume no responsibility for your trading results. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. [Unsubscribe]( DTI Trader 1555 University Blvd S Mobile, Alabama 36609 United States (251) 652-1555