Good Evening Traders and Investors,
I am thawing out after a long day on the hill. It was negative 4 when I drove to the mountain and we reached a daytime high of 14 degrees. At least there wasn’t any wind! Mother nature has not been kind to us yet, but the excellent snowmaking and grooming teams at Deer Valley have a great number of runs in top shape.
Just like mother nature is taking her sweet time to arrive, it seems as if volatility is taking its annual December hiatus. I know there are moves out there, but the volume and liquidity is dying off, so BE CAREFUL.
Back in Chicago, my trading firm shut down for 3 weeks. Why? Because the entire world is on vacation. Now don’t get me wrong, if something causes volatility, the traders will return, but there needs to be a catalyst. So if there isn’t a catalyst, don’t try to force things.
If you had a great year, you are somewhere warm with the guys or with the family. If you had a bad year, you hope next year is better, but you definitely aren’t going to try to get it all back in late December!
So that is the trading psychology lesson for the month. On to the charts:
As I mentioned in last evenings blog, we are at a pretty crucial area of support for the GBP. If the equity markets cracked, so would the support level. What did the equities do today in the US? We were up 1/2 percent in the DOW.
The GBP flirted through support and came back and closed above. And the dollar to equity relationship continues…
Happy Trading and Be Environmentally Cool!