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JDT S&P Morning Report 12-21-2015

The document provides a morning report on the S&P 500 for December 21, 2015. It summarizes that: 1) On Thursday, the prominent point of control (POC) indicated that the market was getting emotionally short, as traders were shorting at unfair prices rather than letting the POC migrate lower. 2) Additional anomalies on Friday showed further emotional selling, with the POC failing to move lower with the price. 3) Traders who shorted on Thursday and Friday likely felt smug at the end of the week but anxious when the market opened on Sunday given the emotional short positions.

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21 views3 pages

JDT S&P Morning Report 12-21-2015

The document provides a morning report on the S&P 500 for December 21, 2015. It summarizes that: 1) On Thursday, the prominent point of control (POC) indicated that the market was getting emotionally short, as traders were shorting at unfair prices rather than letting the POC migrate lower. 2) Additional anomalies on Friday showed further emotional selling, with the POC failing to move lower with the price. 3) Traders who shorted on Thursday and Friday likely felt smug at the end of the week but anxious when the market opened on Sunday given the emotional short positions.

Uploaded by

babasolai83
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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S&P 500 Morning Report For 12

12-21-2015

Thursday’s prominent POC was the first indication that the markett was getting emotionally
short. I used the term emotionally short for the following reason. The POC is the widest
line reading from left to right on the Profile; this is simply nomenclature. What is far more
important is how to think
hink about this reference
reference. The he POC is also the fairest price at which
business is being conducted. When the fairest price doesn’t migrate lower with price,
emotional traders are getting short at bad prices.

1
Anomalies are another indication of emotional
selling. Additionally,
dditionally, the POC was at halfback,
which tells us that, once again, the fairest price,
price or
POC, didn’t migrate lower with price. Market is
emotionally dangerously short.
Focusing g on how to think about markets What
do you think the emotional traders who shorted on
Thursday and Friday are feeling. I’m talking about
those who went home short. On n Friday’s settle they
likely felt very smug. When the market opened up
on Sunday how do you think they felt.

2
Last trade at 8:00 ET is exactly at halfback from Fri
Friday;
day; the odds now favor an early
balancing period. When
hen we open within the center of the previous day’s range we suggest
letting the market settle before becoming involved.
This is a shortened trading
ng week leading up to Christmas
Christmas. Markets
arkets are likely to continue
co to
be thin and volatile.
We will be with you live as the market opens.

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