Sang Lucci December 19th Pre-Market Update
With the lack of any solid economic data out this morning and the indexes already putting in significant moves in the past few sessions, we're expecting some choppy action in the futures today. Consequently, this will make for more difficult trading as this week closes out. We are slightly higher this morning on the SPY but stocks are a mixed bag in the premarkets with many large-cap names printing lower than where they closed yesterday.
This is a good example of when many traders should start exercising the discipline of NOT trading. It's a difficult concept because, as daytraders, we believe we need to sit at our computers everyday to scratch out some profits. Those who have caught this move higher the past couple days have been rewarded handsomely and now it's time for everyone to calm down and figure out where & when the next big picture move will take place. The markets may continue to trickle higher today but profits won't be as easily generated.
One thing worth mentioning before the trading session begins is to not get overeager on the short side. A lot of traders are looking at these rallies and scouring for short entries which won't arise for another couple days, until the markets get the last bunch of suckers long and pull out the rug.
GOOD MORNING YOUNG WORLD!
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