The markets look like they want to move higher over the next 30 trading days before we say goodbye to 2023.
How will they get there? Here’s how I see it…
Based on price action from the first trading day of the year, the S&P 500 (tracked by the SPY ETF), Dow (DIA) and Nasdaq 100 (QQQ) broad markets are up.
The largest volume spikes on the daily charts confirm the best entries in all three markets for 2023 were in March. Take a look at the year-to-date daily charts below.
Buying and holding several tickers embedded in these broad markets would have paid well if held from the March low until now.
In addition, dividends could have been collected, leveraged option trades could have been played profitably, and life could have been lived with soundness of mind even during turmoil…
If you recall when the banking crisis hit in March, many traders feared it was the end. Instead, it was the best buying point of 2023. I was bullish because I researched the history of similar times and circumstances.
There’s still room for higher prices in the broad markets through the year end, and that’s how I’m trading them — because I’ve done my research.
Even the S&P 500 Equal-Weight ETF (NYSEArca: RSP) is slightly up for the year, but it is clearly struggling. Just look at the price action on this year-to-date chart.
What sticks out to me are the volume spikes in June and November. This obviously differs from the timing of the SPY, DIA and QQQ volume spikes.
Given that the RSP weighs the S&P 500 components equally, I’m quite interested in the potential strength of these components developing at a value price.
Boeing Co. (NYSE: BA) is one such ticker. My Bear Snare Indicator caught a great downturn in July. In October, it caught the uptrend that is now making headlines in November.
Stryker Corp. (NYSE: SYK), in the Health Care sector (XLV) is another component of the S&P 500 making some nice moves. My Dark Money approach pointed out major professional accumulation right before the recent October bottom. That could have given traders a clue to the large move.
The options trades on this ticker are too thin for my taste, however, but the dividend and capital appreciation are very appealing.
On the flip side, I’m keenly aware that supposed setups of these S&P 500 components could fail. With that, I’m just as interested in failure because that will give me clues for 2024.
One such failure happened recently on Nvidia Corp. (Nasdaq: NVDA). I wrote about it on Oct. 30. NVDA ignored the popular head-and-shoulders pattern, gap fill, and 200-day moving average.
I wrote that if it did, it was game on for 2023!
The new year will bring different opportunities and new challenges.
I’m planning for both, just like I did last year when I told traders Eli Lilly & Co. (NYSE: LLY) was about to make history while other markets were about to put fear in the minds of the best traders.
Since then, LLY is up about 70%!
Think and win!
Celeste Lindman
Celeste Lindman Trading
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*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
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