Good Morning Friends!
Only 2 more trading days left for 2016 and I think we can expect the trading year to end with a low volume whimper. It is possible we get a surge of energy this morning due to 3 economic reports, international trade, jobless claims and Petroleum status report. If I were to bet the one most likely to have the power to move the market today it would be the report on the oil.
Yesterday was honestly a bit of a surprise to me but at the end of the day, there was really not much damage done, however, if there happens to be follow-through to the downside today with some energy then we would have to admit that the bears have taken at least short term control.
As always it is best to first manage the trades that you are in before considering any new positions. I don’t want to say never but it is unlikely that I will be making any new trades the rest of the year. Volumes are weak and will continue to weaken so I will reserve judgment on positions when volume return sometime mid next week.
Again I will say if you do plan to trade, consider smaller than normal positions and plan to take profits quickly because a low volume market can shift very quickly. Do some thinking about the year ahead and how you could make adjustments to improve your trading results. Planning time is never a waste of time.
Have a productive day!
Trade Wisely,
Doug
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