Market Overview 12/2 - 12/6 · Trash Panda Trades

Market Overview 12/2 - 12/6

The markets are still trending bullish with SPY hitting new all time highs last week. QQQ, though lagging, is showing signs of potential for new all time highs sooner rather than late as well. SPY is now 8 days above the 5SMA showing continued momentum to the upside. QQQ broke out of a bull flag pattern on Friday (keep in mind it's on lower than normal volume).

This week is fairly calm when it comes to potential market moving events on the calendar. Several employment data updates in the premarket to watch that could set important levels to watch for the day.

The breadth of this current bull market is really showing in multiple sectors. Tons of sectors are trading over 7 days above the 5 period simple moving average as we speak. Bull flags are setting up in the real estate and building materials sectors. Pharmaceuticals and biotech are showing potential signs of a bottom being put in (keep them on watch for confirmation).

My first trade idea for the week is a repeat of the SXC Cash Secured put from last week. Price is trading sideways currently and there is decent risk to reward there.

You can read more details over in my newsletter here.

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