Why volatility should rise this week

Friday closed the partial week of trading and left us with the lowest volume week of the year on the NYSE and the second lowest on the Nasdaq. Friday closed down across the major indexes, but the week closed mixed. Nasdaq 100 and Nasdaq Composite closed the week green, while the S&P 500 and Dow closed red.

Crude closed the day up at $59.90 +.66. Nice rebound after Wednesday’s drop off supply increasing. Gold rallied 10.00 to close at $639.00. Partially due to the dollars weakness, but also just some buying across the board. Some new anxieties in Iraq helped fuel both markets and could continue to keep things jittery into next week.

Monday I will look for an early pullback and a slow start to the day. Post holiday’s usually get a slow start while everyone gets caught up. So keep that in mind. There isn’t any economic data or big earnings so there is no rush to jump in. We’ll look for early weakness in the broader markets and probably worth a look at brokers for some pullback and internets could have an active day. With Monday being marked as cyber shopping day.

The tight consolidation and overbought conditions we left last week put us in a nice place to move this week. With a slow start Monday likely to happen the rest of the week should pick up pace and provide a lot of volatility. The trend is still up and now the talk of Santa Claus rallies will kick in. So a pullback to get the market positioned for a move before folks start thinking about holiday vacations would be great for us.

Economic Data for the Week of November 27 — December 1:
Monday nothing due out, Tuesday 08:30 Durable Orders, 10:00 Consumer Confidence, 10:00 Existing Home Sales, Wednesday 08:30 GDP Prel., 08:30 Chain Deflator-Prel., 10:00 New Home Sales, 10:30 Crude Inventories, 14:00 Fed’s Beige Book, Thursday 08:30 Initial Claims, 8:30 Personal Income, 08:30 Personal Spending, 10:00 Chicago PMI, 10:00 Help Wanted Index, Friday 00:00 Auto Sales, 00:00 Truck Sales, 10:00 Construction Spending, 10:00 ISM Index.

Some earnings for the week: Monday pre market — TOPT and after the bell DCI. Tuesday pre market — JTX, SKIL and after the close ARO, LNUX. Wednesday pre market DSW, TIF and after the bell CHS, SNPS and TIVO. Thursday pre market DLM, DG, HNZ, and after the bell HRB, ISLE, OVTI, UNCA. Friday pre market WMG.

ES (S&P 500 e-mini) Monday’s pivot is 1404.00, weekly pivot is 1404.50. Intra day Support: 1401.50, 1400.75, 1398 and 1395.50. Resistance: 1408.00, 1411.25, 1413.75, 1415.50. 30 minute chart is below.

XBD (brokers) closed —1.02 at 247.00 breaking the 5 consecutive all time new highs ride. Support: 244.47, 245.40, 243.22. Resistance: 248.11, 254.43.

I hope everyone enjoyed the long weekend and is ready to trade this week, we should have nice movement.

Teresa Appleton has traded equities and options for
nine years and futures for seven. She is founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and
futures traders,

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