fbpx

12/18/23 Your Free Lunch is Here

News:

On Friday, markets reached the mid-way point of December. The end of the year is practically here.

Friday’s trading was choppy. The triple witching was a likely cause.

Chart from Finviz

The indexes ended the day mixed…

  • Dow Jones +0.2%
  • Nasdaq +0.4%
  • S&P 500 -0.0%
  • Russell 2000 -0.8%

Sector Round Up

8 of the 11 sectors ended Friday lower.

The winners…

  • Technology (XLK) +0.5%
  • Consumer Discretionary (XLY) +0.2%

At the bottom…

  • Healthcare (XLV) -0.9%
  • Real Estate (XLRE) -1.2%
  • Utilities (XLU) -1.7%

Why only two winners? Consumer Staples (XLP) ended the day unchanged.

Technicals: 

The S&P 500 is ready to return to balance…

SPY Daily Candles – Chart from thinkorswim

After smashing through a critical resistance level, the index, which tracks 80% of all market cap, became extremely overbought.

A retest of the marked level would alleviate the overbought pressures.

Your latest readout…

Timing:

Every year, around the 15th of December, beat-up stocks get a little more beat up. But it provides an opportunity for nimble traders

  • Stocks making new lows tend to bounce
  • Tax selling is usually done around this time
  • Historically, these stocks tend to outperform the rest of the market through Feb 15

We are providing a list of our favorites. How you trade them is your decision.

We will exit our positions by mid-February at the latest.

  • North European Oil (NRT)
  • Express CAyman (ZTO)
  • 374Watrer (SCWO)
  • 5E Advance Materials (FEAM)
  • Altisource (ASPS)
  • Amtech (ASYS)
  • Icahn (IEP)
  • Largo (LGO)
  • Quipt Home (QIPT)

This trade is so consistent that it’s been called the only “free lunch” on Wall Street.

Watchlist:

*Low Float
^Open Position

*IMMX on watch
*OPFI support at $4.25
^*MYO support at $4.50
ALXO support at $12
CRGX support at $17
STTK on watch
ABSI support at $2.50
ASPN support at $13
PRCH support at $2.20
JBGS support at $17

Secondary watchlist—float about 100 million

GPS support at $20
HPP support at $8
NMRK on watch
GOTU support at $4.50
BVN on watch
S support at $24
LYFT on watch

Leave a Comment

Your email address will not be published. Required fields are marked *