Although Santa has returned to the North Pole and his jolly Ho, Ho, Ho, has faded into memory, the big guys’ influence continues as the strong retail numbers continue to inspire the bulls.  Lead by AMZN’s record-breaking sales results, there were new record highs achieved in the DIA, SPY and QQQ on relatively low holiday volume.  As we head into the weekend and the New Year, the bulls seem to have plenty of momentum on their side, but be careful not to become too complacent.

Asian markets finished the week mixed but mostly lower.  European markets this morning see only green following the optimistic lead of Wall Street.  US Futures point to a gap up open on this last Friday of 2019, fulled by momentum with very little on the earnings or economic calendar to provide inspiration.

On the Calendar

On the Earnings Calendar, we have 18 companies reporting but none are particularly notable.

Action Plan

Strong holiday retail sales continued to inspire markets higher yesterday as it seems Santa’s influence remains strong this year.  Once again, the DIA, SPY and QQQ reached out for new record highs yesterday on low holiday volume.  There is no doubt this has been an amazing quarter to top off a truly remarkable decade for the market.  As we slide into the weekend with just three trading days left in 2019, the momentum is certainly with the bulls and there are no indications in the price action they are ready to stop just yet.

However, we all know that what goes up must eventually come down, so we must not get complacent and be ready to act if and when the bears decide to reassert themselves.  Futures this morning point currently point to a mixed open with the Dow suggesting a substantial gap up at the open.  Gap up opens at new market highs make me watchful of the dreaded pop and drop possibility so be careful not to chase the open, wait to see if there are buyers that follow-through.  With such a strong trend and momentum, follow-through may not be much of a wait even though there will be very little inspiration in the earnings and economic calendar today.

Trade Wisley,

Doug