Holiday Trading Begins For SPX; What Will It Bring? December 27th Trade Plan
In my last newsletter on Thursday, I emphasized how I would not be trading much/trading light on Friday and simply holding on my leftover long. This turned out to make sense as Friday’s session was a choppy, low-liquidity, pre-Holiday consolidation day as most volume has left the market for the holiday season.
The next week will also likely be slower until the real volume returns in early January. Despite the chop, Friday was a green day though and as most readers know, Friday is the 1st day of the infamous “Santa Rally” period which refers to the last 5 trading days of this year and the 1st two trading days of the new year. In this years case, this would mean from Friday December 23rd to January 3rd.
Will Santa drop the ball this year? In today’s newsletter, I’ll be talking the historical performance/win rate for this period, the setup heading into this upcoming week, and the actionable trade plan for Tuesday.