Las Vegas Money Show

Good morning from the Las Vegas Money Show.  Asian markets closed modestly higher across the board overnight, and the European markets are currently mixed but mostly lower this morning.  Consequently, US futures are pointing to a mixed open as I write this.   Keep in mind that bond and currency markets are closed today in observance of Veterans Day.  As a result, don’t be to surprise if price action becomes light and choppy after the morning rush.

Friday’s 200-point Dow sell-off was a reminder that only is volatility still with us but that there is still a lot of technical damage in the chart still in need of repair.  Although we have a lot of earnings reports today with this being a banking and governmental holiday, they may find it difficult to find the volume necessary to move.  Of course, anything is possible so say focused on price action and disciplined to your rules of engagement.

On the Calendar

Due to the observance of Veterans day bonds and currency trading markets are closed today.  The stock market will be open but with most banks and big instructions closed trading could be limited.  There is a Fed Speaker at 2:30 PM Eastern today but nothing on the calendar that would be expected to move the market.

On the Earnings Calendar

There are just over 150 companies reporting earnings today so make sure you continue to check earnings dates against current holdings.

Action Plan

We may find today a challenging day to trade with bond markets and currency markets closed.  With banks and most of the large trading intuitions closed or lightly staffed we could see choppy price action after the morning rush.  As I write this, the US Futures are pointing to flat to a mixed open.   Don’t be surprised if the volume drops off quickly making it difficult for anything to follow-through.

The one thing that could give the market a little boost it’s the more than 150 companies reporting earnings today.  However, I would be careful of a possible pop and drop and keep in mind all the indexes remain under significant resistance levels.  Having said that we also need to keep an eye out for the beginning of a Santa Claus rally.  Historically mid to late November tends to be the time Santa begins to affect so stay focused.  Remember current volatility will likely continue to make swing trading challenging for many traders.  However, if you stay disciplined to your rules, wait for price action and chart patterns to develop there will be an opportunity for profits.

Trade Wisely,

Doug