Rocket Equities & Options Report

By Tommy O’Brien

December 19, 2022

This market is down almost another 2% just since the update I posted on Thursday. It’s not going to be a one-way trip, but it’s tough to find a reason to buy anything right now at this price level as we come into light holiday trading and the potential for irrational swings with fewer market participants than usual.

We have the 10 Year trading to lower price, bouncing off the upper boundary line, indicating higher rates coming at us if this is a rejection of that upper channel line.

The dollar is somewhat flat sitting at the .382 longer term chart, while Gold is a few dollars lower and also sitting at an important .382 of a slightly shorter-term trend.

The VIX is not acting as it usually does, and is lower on a day when the markets are selling off.

Even if this is the start of the next move lower, there will be bounces. The market is now off 6.27% since last Wednesday’s high of about 4,085, and it’s basically been a one way trip since Powell spoke that afternoon. And that doesn’t even include the previous day’s spike high about one hundred points higher following the CPI print last Tuesday morning. This is a thin market and things could get out of hand so stay vigilant if you have any positions you are not comfortable taking some heat on over the holidays. We are getting some large moves right now, and even a .382 of the recent move lower could pop the ES 100 points to the upside and still be a dead cat bounce. Stay tuned for updates!

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