By Lawrence G. McMillan
The feature article is our annual market review and forecast issue. Forecasting has taken a back seat to Fed watching these days, but we present some data on how markets in general have fared after two strong years, such as the two that have just concluded. There is also a detailed description of the current technical state of the market, including how long it’s been above its 200-day moving average.
Our current market review is on page 6. Basically, we defer to the bullish case as long as $SPX can hold above support at 1810.
The “First Day of the Month” trading system is going to be put back into action for January (article, page 7). Also on that page, we briefly review other seasonal patterns that we might trade in January.
On pages 8 & 9, there are two put sales: JC Penney (JCP) and Gamestop (GME). Also, there is a Live Cattle futures option put ratio spread, and a put-call ratio based trade in AT&T (T).
Finally, on page 12, we prepare for a $VIX futures calendar spread, if the term structure continues to steepen.
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