It’s the calm before the storm.

Next stop… family gatherings and holiday festivities mixed in with a santa-con party.

But when it comes to the stock market, many people are left wondering what’s coming next.

Don’t let the Christmas spirit take its toll on your trading account.

Let’s review what’s due up for the markets.

The Week ahead: December 16-20

 

It seems that the markets are starting to get a bit exhausted at all time highs.

As of Friday, the SPY’s are trading outside of the Bollinger Bands on the daily chart and the weekly chart is beginning to touch the upper Bollinger Band as well.

This seems to signal that a pause is needed in this recent run higher.  The SPY’s are at a point where we can expect sideways action or a slight pullback to get back into the bands again.

Resetting the bands and gaining energy in the stock is needed before we can test new highs again.

But don’t get ahead of yourself.

We do need to be a little careful with how this trade unfolds.  Typically it is seen prior to holidays the markets will enter a period of low volume.

During this time I would expect to see larger than average swings from all the major indices.

I think a massive correction at the end of this move is unlikely.

The markets are getting exactly what it wants these days. Low interest rates, a China trade deal, Brexit vote, FED pumping money, plus more.

From this point of view, we are looking to have clear sailing ahead.  As long as no major events or news hit the tape.

Major outlook going into 2020 is subdued, to slightly negative.  Even if the markets faded 2-5% that would be a minor pullback on the weekly charts.

Options Profit Planner Update

 

All of our trades from last week fired off.

Most of the profits are starting to be taken on our main trades.  I am planning to add some defense positions on those with open profits still left in the markets.

Let’s take a look at the rest of markets with the economic outlook and the upcoming earnings calendar for the week.

Economic outlook: December 16-20

 

Monday

• Markit Manufacturing PMI
• Housing Market Index, National Association of Home Builders

Tuesday

• Housing stats, U.S. Census Bureau
• Industrial production and capacity utilization, U.S.Federal Reserve
• Job openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics

Wednesday

• No major reports scheduled

Thursday

• Conference Board Leading Economic Index for U.S.
• Existing home sales, National Association of Realtors

Friday

• Q3 GDP, 3rd estimates, U.S. Bureau of Economic Analysis
• Personal income and consumer spending, U.S. Bureau of Economic Analysis
• University of Michigan Index of Consumer Sentiment

Upcoming Earnings Calendar

Monday, Dec 16

• AVXL – After Market Close
• HEI – After Market Close
• HEX – Before Market Open
• KEQU – Before Market Open

Tuesday, Dec 17

• AEY – After Market Close
• CRNC – Before Market Open
• CTAS – After Market Close
• FDX – After Market Close
• JBL – Before Market Open
• NAV – Before Market Open
• SCS – After Market Close
• WOR – Before Market Open

Wednesday, Dec 18

• ABM – After Market Close
• BYSI – Before Market Open
• GIS – Before Market Open
• MLHR – After Market Close
• MU – After Market Close
• PAYX – Before Market Open
• REVG – After Market Close
• RFIL – After Market Close
• TTC – Before Market Open

Thursday, Dec 19

• ACN – Before Market Open
• AIR – After Market Close
• APOG – Before Market Open
• CAG – Before Market Open
• CAMP – After Market Close
• DRI – Before Market Open
• EPAC – Before Market Open
• FDS – Before Market Open
• NKE – After Market Close
• RAD – Before Market Open
• SAFM – Before Market Open

Friday, Dec 20

• BB – Before Market Open
• KMX – Before Market Open
• WGO – Before Market Open

 

There you have it – that’s the lineup for the next 5 days.

Have a great week trading!