The Closing Print live trading and financial blog during market hours.

Oh Oh Oh Where’s Santa? Markets Tumble Thanks to News ALGOs

Yesterday we outlined what we would do if Santa didn’t show up and the markets moved lower. Doom and Gloom Persists. It looks like News ALGOs had a field day.

We added to hedges as the plan dictated. SQQQ, SPXU, and SDOW are inverse index funds that will allow you to sleep at night, or so the thinking goes.


SQQQ December 20


Markets Tumble

Stocks sold off sharply on Wednesday, supposedly in reaction to comments from Fed Chair Jerome Powell. New ALGOs most likely had a huge impact, as the FED chair was seen as less dovish than hoped. The hope was for one rate hike and more dovish commentary. Instead of four rate hikes, he said inflation data suggested only two (2) hikes in 2019.

The S&P 500 closed lower (-1.54%), reversing solid gains (+1.00%) in the morning session prior to the Fed event.

SPX 12-20-2018


Momentum and breadth indicators, MACD, NYMO, NAMO, are back in oversold territory, suggesting the Major Indices are stretched to extreme lows going into the holiday weekend.  This is the worst December in recent memory, and a low not seen during the month in over 50 years. The 6.0% decline in December of 2002 was scary enough for this trader.

That said, sentiment indicators suggest that this is a good buying opportunity, however, we need a catalyst. Until then we’ll stick with our hedges and trade smaller positions.

Join us for the LIVESTREAM broadcast during market hours. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,



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Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.

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We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

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Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.