Daily Commentary: December 30, 2024

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Selling Into Year End

Posted by Pete Stolcers on December 30
www.oneoption.com

This is why we are in cash. It’s a time for observation.

PRE-OPEN MARKET COMMENTS MONDAY – I’ve been vocal about getting to the sidelines while the market bid is still strong into year end. I am bearish and I am evaluating the price action. I can’t aggressively get short until I have technical confirmation. The price action in January will give me the information I need.

One thing that you should know by now is that my research is thorough. I rely on grass roots sources of information and I don’t listen to other analysts – EVER! China is on the brink of a credit crisis. This is the one thing that can rattle global markets and it is the second largest economy in the world.

I don’t trust China’s economic releases, but when they say the numbers are bad, I know they are much worse than reported. Their industrial profits have been in a very steady decline and they fell dramatically over the weekend. They will report official PMIs tonight.

Lean on my comments and The System and you will do well next year. It is going to be volatile. I believe we are going to see a nice drop in January and we could get a relief bounce around the inauguration. If I’m right, that will be a lower high and it will pave the way for shorting. If you short too early, you are going to take pain and you risk being wrong. Buyers have been conditioned to buy over the last 18 months and the market will bounce. This is a time to stay liquid and flexible. This is a time to evaluate. WE ARE STILL WAITING FOR OUR ODDS TO IMPROVE!!!!

This is a big drop this morning and it is likely to stick. The decline has been steady all night and that is a sign of persistent selling pressure. Overseas markets were down marginally, but not dramatically. You can day trade from the short side. I would NOT be trading from the long side today. If you get trapped on a bad entry you are going to take unnecessary risks if you hold overnight.

Support is the low from last week and resistance is AVWAPQ.

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