Volatility is back!
But is it here to stay? That is the question.
You can see what things looked like coming into Thanksgiving in this week’s RPP Report.
But with the prices of many key assets now below critical levels, we wonder if this is just more of a messy market, or the beginning of something bigger.
Here is the S&P500 stuck below this overhead supply from earlier this month, but above former resistance from September.
You know how parents always tell you nothing good ever happens after midnight? Well in the S&P500, nothing good happens below 4500:
If we’re below that then there is a probably a much bigger problem out there, and the heaviest cash positions in 18 months would be warranted.
In the meantime, we’re looking for relative strength.
I will point to the 2 names we put out from the long side this week: Cheniere Energy $LNG and Unity Software $U.
Here are the details from those trades. They’re both hanging on there just fine today.
The risk levels were very well-defined. And the risk in the S&P500, from a broader market perspective, are well-defined also.
But the levels are set.
New Month Strategy Session
We do this at the beginning of each month. We zoom out, take a step back and identify the primary trends.
I couldn’t think of a better time to do this, considering the current market action.
I’ll be hosting this month’s live call on Wednesday December 1 @ 6PM ET. Premium Members can register for that here if you haven’t already!
Can’t wait for that. We have a lot to discuss!
Tech stocks! Energy! Gold! Interest Rates! Stocks showing relative strength.
See you then!