Every Monday, I like to take some time to assess the market’s landscape to determine where it’s headed for the week.
This week, as you know, is different than most. It’s the last trading week of the year, and the market is closed on Friday due to New Year’s.
The week may be shortened – but, in true 2020 fashion, there are still a ton of factors driving stocks all over the place.
And there are three market movers shifting to the top of my list right now.
These three factors have the potential to shoot the market higher or lower – and as they do, they could reveal some big-time trading opportunities.
Here are the top three market movers to expect this week…
Volume is low as we head into the Christmas holiday.
It makes sense – the market is slow-moving like this every year around this time. The Santa Claus rally has ended, and everyone’s getting ready to spent the next week with their family, not in the market.
When trading volume is low, so is volatility. And low volatility has the potential to hurt traders – remember my trading commandment, volatility is a trader’s best friend?
That’s why you’re better off staying out of the market during these low-volume holidays.
So today, instead of tossing you a new trade recommendation, I’m going to take some time to explain another one of my important trading commandments.
This one has everything to do with volume – and once it picks up again after the holidays,
these are five words you won’t want to forget…