Odds & Ends Market Talk: Dec 18-22

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Rob Friesen and Dave Singh discuss Odds, trading setups and considerations for the week of December 18-22. Recorded on December 17, 2023.

In this episode of the StockOdds, Odds & Ends Podcast, hosts Dave and Rob offer a detailed analysis of the current state of the stock market, with a focus on preparing listeners for the upcoming trading week. The episode begins with a discussion of the S&P 500 (SPY), where they debunk a common trading fallacy related to the market's tendency to rise and fall. They emphasize the importance of considering the slope and volatility rather than just the high and low points of the market.

The conversation then shifts to the NASDAQ 100 (QQQ), highlighting its strength and early break through the yearly high. Attention is also given to the Dow Jones Industrial Average (DIA), which has shown consistent growth, particularly in the industrials and blue chips sectors. The Russell 2000 Index (IWM) is discussed for its volatility and significant growth in response to the potential for lower interest rates.

The hosts review sector performances, noting the standout performance of real estate and basic materials sectors, influenced by interest rate changes and the decline of the U.S. dollar. The technology sector is also mentioned for its resilience during the week.

They discuss market and sector ETF performances, pointing out the increased relative volumes post-FOMC announcement and the impact of expiration day. A map of the market is provided, showing the performance of key companies and sectors.

The episode covers Bitcoin's movements as a proxy for risk appetite and the U.S. dollar's response to interest rate expectations. The VIX's decline is highlighted, warning traders against unnecessary risks in low volatility environments.

Gold's market performance is analyzed, showing a spike followed by a pullback. The economic calendar for the week is outlined, focusing on housing data, GDP reports, and inflation data. Key earnings reports from companies like FedEx are also discussed.

The hosts conclude the podcast with strategic insights for trading in the coming week, emphasizing the importance of being aware of market timings, particularly around economic data releases and earnings announcements. They encourage traders to stay informed and make calculated decisions based on market conditions.

Tune in to this episode of the StockOdds, Odds & Ends podcast for a comprehensive and insightful analysis of the stock market, offering valuable guidance to help traders navigate the week ahead in the financial landscape.

Disclaimer: The views, thoughts, and opinions expressed in this video belong solely to the contributor(s). All future returns are hypothetical as market conditions can and do change. There is a very high degree of risk involved in trading. There is Risk of Loss. Past results are not indicative of future returns. StockOdds, Inc., its associates and contributors assume no responsibilities for your trading and investment results. The indicators, strategies, and all other information is for informational purposes only and should not be construed as investment advice. Affiliates, partners, and principals of StockOdds, Inc. may have a position for or against, or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.