As E-mini traders, our view of the markets is more distant than someone who traders a particular company’s stock. For example, if you trade Apple’s stock, quarterly reports, press releases, product launches, keynotes, and other big events will typically drive value up or down. Remember that the E-mini is a fraction of the big S&P 500 index, which is composed of about 500 companies on the NYSE or NASDAQ. When the E-mini moves in one direction consistently, you could say that is because the overall U.S. stock market is trending the same way. In fact, many consider the S&P 500 the best indicator of U.S. corporate performance. As such, you, the retail trader are trading an abstract piece of they incomprehensibly large pie. It’s truly amazing stuff. With these considerations, Black Friday trading can be especially tricky.
As we head toward the holidays, corporations begin consolidating annual reports and figures to give their shareholders. Almost by design, this excitement coincides with the holiday shopping rush. Two of the largest retail events occur in November: Black Friday and Cyber Monday. As more shoppers want to avoid the long lines, traffic, and occasional hostility of Black Friday shoppers, we see Cyber Monday becoming more of an attraction. Really, with two-day Amazon Prime shipping and how that pays for itself in a short period of time, one of the only reasons to go to a brick-and-mortar retailer is to find a deal you can’t find elsewhere or limited stock. As a result, you could say the markets, and therefore the E-mini S&P, are under a lot of performance pressure. Compounded by Turkey Day, Christmas, and New Years, we could see some high action.
Beyond Black Friday Trading
Regarding that high action, let’s talk about the January Effect for a moment. Yes, you’ve probably seen our other videos. These setups have become more consistent lately, probably because of the rush we just talked about. We don’t have much time left in 2017, especially when you consider the holidays. The big players won’t be at their desks. Sure, the high-frequency trading algorithms will be grinding away as usual, but you may not see the volume around trading holidays. That’s what it may be a good idea to take these long January Effect trades as they come. Look at what the Atlas Line found the other day. Really, watch the video.
If you’ve been on the fence about picking up any of the day trading methods from DayTradeToWin to compliment this great end-of-the-year activity we’ve been seeing. Now is the time to do it. Hit them up via the contact page and ask them if they’re running any special Black Friday or Cyber Monday trading discounts.