Hey friend,
This morning, we got some home price data, which showed higher than expected growth.
On top of that, we got some business sentiment data, which pointed to an unexpected improvement.
All in, slightly positive data for the economy.
Let’s see how markets have been moving.
Note: Our offices will be closed for the week starting tomorrow, so expect the next edition of this newsletter to resume next Monday in 2026.
The Daily Direction
Note: All indexes closed slightly negative yesterday and opened negative this morning as well – sending the short-term direction for the Russell 2000 back downward.
The Daily Nugget
Natural “lulls” in the market are great times to position yourself.
It’s the end of the year – and most of the professional investors and traders are on holiday, relaxing.
That’s why trading volumes tend to be much thinner this time of the year.
Lots of people are just “out of the market”.
But this also creates a sort of “lag effect”…
Where stocks that would shoot up now…
Might only do so when the trading volumes return.
In other words, if you have high-conviction trade ideas ready to go…
Now may actually be the best time to execute on them.
We’re not saying to watch the markets 24/7 during this time of the year.
But we are saying that because so many people are not trading during these times…
It might actually be one of the best times to position yourself.
Just something to think about.
Have a great New Year’s.
We’ll see you in 2026.
The Traders Agency Team
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