Updates for Thursday December 28, 2023

• We trade stock market swings based on VIX, via SVIX UVXY TQQQ TNA and more.
• Current trade record here. ​
• Subscribe to get our daily analysis, trade plans and real-time entries/exits.​

Updates 4:00 PM ET - Thursday

Exited SVIX
We wanted to capture VIX dropping from 14.49 down to 11.8.  So we entered SVIX on Friday Dec 22.  This is a quick bull trade and with UVXY rising ahead of the holiday, we decided to lock in our profit.  ​

Updates 1:00 PM ET - Thursday

Upcoming key events
2023 is coming to an end. It's time to focus on January.  Note that we've added the earnings dates of the Magnificent 7 stocks to the calendar below.  The second half of January will have a lot of fireworks.

Read more economic analysis here.

​Key S/R levels
All levels are still the same.

All indicators still support the bulls

• VIX continues to drop towards 11.8
• VVIX is dropping as well.
• McClellan Oscillator (Stockcharts.com $NYMO) is back above 50 again. 
• Percent of stocks above 200-day MA is inching upward (Stockcharts.com $SPXA200R $NDXA200R).
• JNK is climbing up.
• 10-year yield (US10Y) is grinding down.

We expect the current bullishness to last into the early part of next week, which is the start of January.

Expect VIX swings in January
Keep an eye on VIX as it is the leading indicator.  We expect to see VIX drops to 11.8, then bases at this level for multiple days during the first week of January.  ES NQ RTY are likely to rise and may reach resistance at R1 while VIX does this.

Once we enter the second half of January, we are likely to see VIX rise again, and it may rise as high as 15.5 in this second attempt.  Once VIX starts to rise again, ES NQ RTY will likely retest support at S1. If VIX manages to rise up to 15.5, then ES NQ RTY will likely retest support at S2.

Our personal trade plan
As we wrote on Fri Dec 22, we entered SVIX Fri morning to capture VIX dropping from 14.49 down to 11.8.  

If VIX anchors at 11.8 and then starts to rise, we'll aim to capture the rise in VIX from 11.8 to 15.5 with UVXY. 
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​Click here for Signal Trades spreadsheet.

Disclaimer
The information presented here is our own personal opinion. Consider it as food for thought.  We are not offering financial advice. We are not promoting any financial products. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections.  You are proceeding at your own risk if you follow our trades.
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