We have a stacked week of significant events that could prove more difficult to trade than usual. It’s important to understand what these events are and when they are occurring so we understand price action better and stay out of trouble.
Here are the upcoming economic events we’re anticipating this week:
Wednesday, Dec. 15:
- Retail sales
- 1 p.m. Central Federal Open Market Committee (FOMC) meeting with Chairman Powell press conference
Friday, Dec.17:
- Quad-witching: Expiration of equity and index options along with futures
- Option Expiration (OPEX)
- S&P 500 Indexes rebalancing
- Nasdaq 100 rebalancing
Traders who aren’t aware of these events will have more skewed expectations of the market, especially with anticipation of the Santa Rally. By being aware of market events we are more ahead of the game and can prepare for opportunities.
Protect your account, stay patient, and size down until normal price action comes back (when we’ll be ready to attack hard).
Here is our focused list:
GOOGL — Started the week with a reversion to the mean at the daily 21 simple moving average (SMA). GOOGL has a weekly squeeze with a gap to fill from $2,904 to $2,877, the bottom being the 30-day SMA. See if GOOGL can hold the daily mean and head toward last week’s numbers in the $2,980 range for a dip buy opportunity. If it moves to the downside, look for it to fill the gap and hit point of control (POC) at $2,863.
NVDA — Closed down 6.7% on Monday. If NVDA breaks the key level at $280, look for it to move to $271 toward the Ichimoku Cloud. We could see a bounce from $280 to $288 up to $300. Keep an eye on the semiconductor index (SMH) to understand if its overall sector could boost NVDA higher or add pressure to the downside.
SHOP — Dropped to the 200-day SMA on Monday. If we revisit the $1,380 area, we could see a decent dip buy opportunity. Look for it to work its way back toward $1,500.
TSLA — Has a gap to fill on the downside from $944 to $910. If TSLA can’t bounce at these levels, look for it to get to POC at $1,017 and revert to the mean from there.
Stay Focused!