Midweek Trade Ideas + Market Thoughts (12/7/22)

By continuing to read, you agree to the disclaimer at www.aditdayal.wix.com/disclaimer.

We have had one heck of a choppy last few weeks. I mean, just take a look at the lack of follow through and direction on the SPY over the last 22 days:

The good news is- the longer the base the larger the move, aka we should be seeing a large move in some direction soon.

December is also always a tricky month to trade. Why?

#1 you have tax loss selling. Since capital losses can be deducted people sell their stocks to reduce their tax liabilities. That is one reason we are seeing exaggerated amounts of selling on almost zero news.

#2 we have a key inflation statistic coming out on Friday.