From a shaky recovery, stimulus, elections, trade deals, and the like, it helps to boil it down to what actually matters: price and value. So, with that, on tapering holiday volumes, Thursday’s initiative buying, above the $3,731.00 high-volume node (HVNode), diverged prices from value. As a result, the following frameworks apply.
In the best case, the S&P 500 remains above its $3,731.00 HVNode. Expectations thereafter include continued balance or a response followed by initiative buying to take out the price extension at $3,756.75.
In the worst case, the S&P 500 initiates below its $3,731.00 HVNode. Expectations thereafter include a test of the weak, minimal excess low at $3,714.50, and subsequent follow-through as low as the $3,691.00 break-point.
Two go, no-go levels exist; trade that finds increased involvement above $3,752.75 and below $3,714.50 would suggest a change in conviction. Anything in-between favors responsive trade.
Key Events:
Monday: Markit Manufacturing PMI, Construction Spending MoM.
Thursday: Balance of Trade and Jobless Claims, as well as ISM Non-Manufacturing Business Activity, Employment, New Orders, PMI, and Prices.
Friday: Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings MoM and YoY, Average Weekly Hours, Non Farm Payrolls Private, Participation Rate, Wholesale Inventories MoM, Consumer Credit Change.
Key Metrics:
Sentiment: 46.1% Bullish, 27.1% Neutral, 26.8% Bearish as of 12/30/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Neutral) 4,349,151,400 as of 12/31/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Higher) 45.7% as of 12/31/2020. bit.ly/2UpgtRE
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.
This page is where we look to share knowledge and keep track of trades. Feel free to comment if you have questions, concerns, or suggestions. Everyone can improve, so speak up if you see something wrong!
This page is where we look to share knowledge and keep track of trades. Feel free to comment if you have questions, concerns, or suggestions. Everyone can improve, so speak up if you see something wrong!
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