Merry Christmas (Rally)?
On December 6th 2021, I put out a blog post called When To Interfere In Your (Automated) Trading Strategies.
In the video, around the 8:18 timestamp mark, I talked a bit about where the market was (then) and if we should expect another Christmas Rally -- which is a strong seasonal tendency at this time of the year.
Well, it has been pretty darned choppy and tenuous since I put out that video leaning more toward the "yes we will rally" side. It seems the market is looking more positive today, and that the rally "is under way", however, we need to be cautious, because the determining question is, will the SP500 break the highs and confirm the rally into the end of the month?
Here's what that chart looks like today as I write this on December 23rd 2021, as we re-approach those highs again (circled area), and where we were when the video was made on Dec 6th (red arrow area)...
As you can see, we effectively had a "re-test" of the lows (area, not the actual low but close enough) and are now pushing upwards...
For context, here's the relevant XMas Rally discussion (below video) back on December 6th, timestamped to start at the 8:18 minute mark.
Let's see if we can break these highs and keep moving higher!
As mentioned, caution is advised, because remember, the market can go decisively higher or lower, but, it can also move within a choppy and volatile range, too. Those are typically the worst markets to trade for Systematic Traders like us, unless you have a trading strategy that takes advantage of those specific conditions, or, trade something like iron condor options (not our "game plan"!)
Speaking of game plans, check out our Systematic Investing Game Plan Membership if you haven't already by taking a 2-Week No-Risk Trial, and discover some AutoTrading Strategies that fit your unique goals.
(Below video starts at 8:18 and discusses the potential for a XMas Rally)...
Good AutoTrading!,
Systematic Investors Group Team
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