Trade Plan for 12/2-12/6

Will the Evergreen last through December?

My theory in reviewing indices price action from the previous week was that ‘they’ had been buying dips preparing for a possible surge and so long as supports over the daily wicks weren’t violated I was buying dips unless I saw a setup at resistance. I had considered shorting a level close to the gap up open, but decided against that in favor of letting more price action play out before making a decision.

$ES/SPX futures held my daily support over those wicks this past week and buying dips at support has turned out to be the right course of action thus far. ✅

There was a flush for the precious metals out of the gate on the open Sunday. Because of the strength I saw in the previous week I had written:

I bought the dip on Sunday night and price action bounced twice there. I then posted on X right when I took partial profit, but alas price action then plunged on Monday morning and took me out of the rest with a tiny profit. 😐

Summary of Market Action Last Week:

• Monday and Tuesday chopped upwards for the indices and then a Wednesday dip was bought on an abbreviated trading day Friday. $RTY/small caps futures continued to outperform, though not by as much as the previous week. $NQ/Nasdaq futures was the underperformer for the week, but still closed green.

• $GDX/gold miners and precious metals lost ground on the week largely due to a forceful flush on last Sunday evening into Monday morning. Silver demonstrated relative strength, but still closed red after filling a futures contract roll gap and bouncing.

• $CL/Crude Oil futures gapped up, but immediately fell and reversed ¾ of the gains seen in the previous week. $XOP/oil equities also closed red despite strength across the indices.

Here’s how last week closed out:

For the week ahead (12/2 - 12/6/24)