December 12th, 2023

Bulls always find a way. For those who are new to trading, experiencing rollover and year-end holiday markets for the first time, consider yesterday’s trade as an example. All year long, when you have the Magnificent 7 leading the rally and they finally all retreat, and the entire market looks to be declining, we grind higher. Why? Because bulls always find a way, particularly during the rollover and year-end holiday markets. It’s not science, but at this point, it might as well be since I’ve seen this pattern many times before. If you’ve ever seen the movie Jurassic Park, you might recall Jeff Goldblum saying, ‘Life Finds a Way.’ In the markets, ‘Bulls always find a way,’ especially at year-end during rollover.

The CPI prints in line with expectations, and it’s notable that SpotGamma posted this morning, stating, ‘Someone is buying a lot of 0DTE SPX calls today (teal), premarket. I can’t recall seeing this before, particularly prior to a significant data print. The 45° angle of the flow is also unusual, suggesting some type of algorithm.’ I will reiterate this: your technicals are irrelevant during rollover, combined with a heavy data week and year-end holiday markets. There are forces at play where traders must take action, not because they want to, but because they have to. This is not a market that favors short-term technical day traders. Be small and smart; don’t ruin Christmas. I’ll be observing once again today. Cheers, DELI