‘Twas the day before Christmas

And the market wears a frown. 

No congressman’s stirring,

our government’s shut down!

Powell is the Fed Chair,

His rates raised a stench.

Now everyone’s thinking,

He might be the Grinch.

Though jobs are still growing,

And building is strong.

The Bull’s Ran away,

Cause they think that’s all wrong!

FANG has a toothache,

And oil’s in a slump,

But no matter what happens,

We’ll blame it on Trump.

No Santa Clause rally,

Cause China won’t trade,

But it all will get better,

Once an agreement is made.

Though technically damaged,

And the market feels fear,

This one day will be over,

So be of good cheer!

Take heart fellow traders,

As Christmas draws near,

Resolve to joyful,

And embrace the New Year.

Though our problems are many,

Count your Blessings and worth,

With freedom our nation,

the best place on earth!

On the Calendar

There are only five companies reporting earnings today and none that are particularly notable unless you happen to hold them or thinking for buying one.

Action Plan

Although the market will open this Christmas Eve, expect volumes to drop quickly after the morning rush and price action to become light and choppy.  Of course, as the political drama continues to unfold in Washington DC, we can not rule out the possibility of volatility sparked by news reports, or random tweets.  Currently, the US futures are suggesting a gap up open, and it holds it will constitute the totality of this years Santa Clause rally. 

If you’re thinking about trading today and holding over the holiday, I would suggest you thoughtfully reconsider the risk of the government shutdown that may last for the rest of the week.  A Christmas truce on volatility may be called for today but expect it to roar back to life on Wednesday.  The period between Christmas and the New Year is normally challenging due to light and volume but this year could see very wild price action due to the political uncertainty.  The market will close early today at 1:00 PM Eastern and of course will stay closed Christmas day.

I wish you and your family a Very Merry Christmas!

Trade Wisely,

Doug