29Dec10:17 amEST

Dusk Falls on 2017

Regarding the final trading sessions of 2017, we appear to be going out with a bit more of a whimper than a bang, in terms of overall stock action. However, context is imperative, and we know bulls have enjoyed a dazzling rally for a good while now.

Thus, a pedestrian close to the year ought not to be cherry-picked by bears as evidence per se of topping action, especially with a good many market players of size off until at least next week, if not the week after.  

We played a natural gas long inside Market Chess Subscription Services for the first time in a while this week, betting on the cold weather snap and the beaten-down commodity to enjoy a relief rally. The move was fast, as UNG extended back up to its declining 50-day moving average. So, we scaled partial gains this morning. However, we continue to look for more signs as to whether natty is on the cusp of a more meaningful rally in 2018--One step at a time for now after being a perennial laggard.

As for Bitcoin and the cryptocurrencies, I am open to them becoming far more mainstream in the coming years if not decades. But they are indeed, and likely will be seen, as attacks on sovereign states where we can expect governments (perhaps in the U.S. too) to push back far more aggressively on them. Furthermore, the trading itself in these cryptos remains suspect, for now.

Beyond that, I stick to what I do--Analyzing, highlighting, and trading relatively liquid markets, stocks, and ETF where I can sleep at night knowing that I did not unnecessarily pump garbage. If you are always trying to recreate yourself for the hot trend of the moment, in this business you will not end up standing for anything. 

Regarding 2018, the odds say we probably see a bit more volatility than we did this year. But if there is one concept which has been continually drilled in by this market, it is that calling the big, bad, top remains as elusive as ever. Rotation seems to be the wildcard for bulls, and we will keep refreshing those sector and stock beneficiaries for Members.  

If you are taking off until after the New Year, I wish you a happy, healthy, and safe celebration. 

John Law and the Mississippi... The Tulip Bubble


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