It has been an interesting week for the markets, with four consecutive higher highs each day after Monday. I was mainly shorting for three days this week. Monday was the day I completely misread, ending the day flat.
I primarily worked on rectifying Monday’s mistakes. To sum up, I was overly confident. It’s rare in my day trading experience for the market to not provide me with opportunities to take partial gains or break even three times in a row, and that was the case on Tuesday. I shorted the low twice and bought the high once within 90 minutes.
Here are the top news items: Key Banks reported this week. They are doing “well,” or at least that’s what their results indicate: “Better-than-expected earnings from major banks” according to the LSEG Platform. On the other hand, it’s common knowledge that if they were forced to mark to market, it could create turbulence.
Looking longer term, the S&P 500 shows strength on quarterly candles. We are currently trading below last month’s high, and my AAA model has slightly reduced equity exposure. We’ll see if this adjustment pays off. We have about 40% of January left to determine if we’ll reach new lows or close near the highs. I don’t enjoy a range for the rest of the month.
There are high expectations due to the presidential inauguration on Monday; however, money has not been flowing into the US equity sectors funds for three weeks in a row. Except for financials last week.
