Market Recap For 22nd Dec 2014 – Here’s what holiday trading looks like…

By Markus Heitkoetter

Stocks started the week on a positive note with both the S&P and DOW ending the day with new entries in the record books.

In spite of new all-time highs, today’s trading was a bit boring and typical for a holiday week. In fact, the E-Mini S&P was stuck in an 8 point trading range throughout the U.S. trading session.

How small is an 8 point range? Compared to a current Average Daily Range of 39.75 points, the E-Mini S&P traded in a range that was just 20% of its 7 day average range. But small ranges this week are to be expected, and it didn’t necessarily limit trading opportunities for day traders. It was a perfect environment for strategies like the Ping Pong Strategy & Seahawk Strategy.

At the end of the session the S&P closed with an 8 point gain and new all-time high. The DOW had a triple digit gain of 155 points. With a close of 17959.44, the DOW was just able to beat out the previous all-time high close by 1 point.

For those that missed yesterday’s newsletter…this upcoming week is typically a light volume, low volatility, slow week of trading. Markets will close early on Wednesday, December 24th and they will be closed on Christmas Day, December 25th. Markets will be open on December 26th but you’ll find that most traders extend the holiday and aren’t very active on this day (we won’t be trading).

Natural Gas (NG) has had some great trends this year using the PowerX Method indicators. Today Nat Gas suffered a “mini crash” with a 9% drop by the end of the open outcry session. A PowerX Downtrend was identified on 28th Nov 2014 and the indicators have been bearish ever since.

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