LIVE AT 1 PM ET TODAY: GET YOUR VERY FIRST WEEKEND TRADE!
With Thanksgiving on the horizon, it’s time to talk strategy.
Thursday’s market action served up a reminder that sometimes, the best move is to hold back and wait for better opportunities — especially when we’re entering a historically quiet period like the upcoming Thanksgiving week.
Let’s break it down…
The S&P 500 hovered around key levels, chopping sideways for most of the day before closing flat. While the market staged a decent comeback in the final hour, it’s still stuck in a range defined by the 8- and 20-day exponential moving averages.
Bulls have the upper hand right now, but it’s not the time to get overly aggressive — not with the Thanksgiving holiday reducing trading volumes and likely keeping significant moves at bay.
Wall Street portfolio managers are starting to put capital back to work now that Nvidia (NVDA) earnings — which turned out to be a complete nothing burger — are behind us.
But even with some uncertainty lifted, I’d advise keeping new allocations small for now. With markets closed next Thursday and then closing early on Friday while many traders step away, liquidity will thin out, increasing the risk of choppy, directionless price action.
Instead, consider this period a time to reset, analyze and prepare for opportunities once the holiday is behind us. That doesn’t mean sitting idle — there’s room for selective trades — but it’s no time to overcommit.
Where the Action Might Be
Sectors like Communication Services (XLC) and Financials (XLF) have been showing strength, making them prime candidates for small-scale long plays. On the other hand, Health Care (XLV) remains weak, offering potential short opportunities for those looking to balance their exposure.
For those watching individual stocks, some travel and energy names stand out…
United Airlines (UAL) and Royal Caribbean (RCL) both show bullish potential, while the broader Energy sector (XLE) looks like it’s in a steady uptrend. These could offer opportunities if they show confirmation on key technical levels.
Patience Over Action
With the S&P 500 (SPY) potentially eyeing levels like $595 or $600 in the coming weeks, the temptation to go all-in is understandable. But remember — markets don’t operate on your schedule.
Thanksgiving week is notoriously unpredictable due to low volume and fewer participants. Smart traders know when to pull the trigger and when to wait.
Right now, patience is the name of the game. Keep your powder dry, focus on managing risk, and be ready to take advantage of post-holiday opportunities when liquidity returns to the market.
After all, the best trades often come when you’re prepared — not just busy.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Your First Weekend Income Opportunity Drops at 1 PM TODAY!
By the time the market closes today, two types of traders will emerge. Those who’ll spend another weekend watching their accounts collect dust…
And those who’ll get today’s weekend income ticker at 1 p.m. ET, place a quick 2-minute trade, then head into their weekend knowing they’re positioned for a shot at a Monday morning payday.
Which will you be?
Because right now, you’re just hours away from seeing the exact ticker I’m watching for this weekend.
Think about it…
While most traders might spend their weekend stressing about Monday’s open, studying charts, and hoping to find next week’s opportunity…
You could be different.
While we cannot promise future returns or against losses…
By this time tomorrow, you could be out enjoying life — maybe catching up with family, hitting the golf course, or just relaxing…
While your weekend trade works for you.
