Santa Claus Rally – Use These 2 Trading Strategies To Make Money the Rest of the Year

Posted 9:50 AM ET - Yesterday the Fed raised interest rates and the market digested the news for 30 minutes. Once Janet Yellen started speaking, stocks marched higher. As I outlined yesterday, I was hoping for a muted reaction and a grind higher above the 200-Day MA. This scenario presented an excellent buying opportunity and I hope you followed my advice. From this point on, we need strong economic data. The calendar is light the rest of the year and seasonal strength will push stocks higher. The S&P 500 is within striking distance of the all-time high. Macro conditions are stable, but they are not strong enough to push us through. Gains from this point forward will be hard-fought. Swing traders should sell out of the money bullish put spreads in January. Focus on stocks that are breaking through horizontal resistance and use that breakout as your stop. Also keep an eye on SPY $206.35. That is the 200-day moving average and that support needs to hold. If not, consider buying back some of your put spreads. Day trading from the long side is the best strategy the rest of the year. You can focus on momentum and quickly take profits. I like this approach because you don't have any overnight risk. Activity levels will be decent today and tomorrow. The rate hike and option expiration will keep traders engaged. Trading volumes will grind to a halt as we get closer to Christmas. Quiet markets lead to forced trades and force trades lead to losses. Follow my lead and take time off. I will not be posting market comments until Monday, December 28th. When I return we will wrap up a fantastic trading year. My chat room is filled with seasoned traders. Take the one-week free trial and watch them make money every day. They know the pattern we trade and they will not miss a beat in my absence. May you and your family be blessed with health and happiness this holiday. Merry Christmas and Happy Hanukkah! . .

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