Commentary:
Similar to the previous two days, stocks gapped higher on the open, pulled back in the morning, then chopped around in a sideways to slightly higher range throughout the rest of the day. Divergence among the major indices was noted, as the Nasdaq Composite gained 0.8%, but the Dow Jones Industrial Average showed relative weakness by finishing unchanged. The S&P 500 edged 0.2% higher. The small-cap Russell 2000 continued its newfound display of relative strength by cruising 1.2% higher and closing at a fresh 52-week high. The S&P Midcap 400 rose 0.7%.
As expected, volume limped in below the previous day’s levels, marking the stock market’s third consecutive day of gains on declining volume. Total volume in the NYSE eased 16%, while volume in the Nasdaq was 8% softer. Although several sectors have scored decent gains this week, the string of decreasingly lighter volume advances into a very long holiday weekend means intraday trading has been the safest bet.
The stock market’s open until 1:00 pm EST today, but turnover will likely be proportionately the lightest volume day of the year. In our humble opinion, there’s no need to think about entering new trades today, ahead of a three and a half day trading hiatus. You’re not likely to miss much. Set your stops for existing positions on the open, and make it a relaxing four-day weekend instead.
Holiday publication schedule: On Thursday, December 24, the stock market will close early, at 1:00 pm EST. That day, only an abbreviated version of The Wagner Daily will be published, primarily recapping any updates to open positions for subscribers. On Friday, December 25, the stock market will be closed for Christmas Day holiday, and The Wagner Daily will not be published that day. Regular publication will resume on Monday, December 28. Warmest wishes for a Merry Christmas, Happy Hanukkah, and Happy Kwanzaa from Morpheus Trading Group. Enjoy this peaceful time with your family and friends.
Today’s Watchlist:
There are no new setups in the pre-market today. As per above, we’re not interested in “officially” entering any new trades in such a light volume environment, ahead of a very long weekend.
Daily Performance Report:
Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 Wagner Daily model account size. Changes to open positions since the previous report are listed in red text below. Please review the Wagner Daily Subscriber Guide for important, automatic rules on trigger and stop prices.
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Notes:
Edited by Deron Wagner,
MTG Founder and Head Trader
market timing model: BUY Signal generated on close of Sept. 21 Market timing model is…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…