NOW OR NEXT WEEK - Whatever happens this week, will likely happen today and tomorrow. The US Thanksgiving holiday kicks off on Thursday, and most market participants in the US will already be in vacation mode on Wednesday. We are into an interesting time of year, with the Thanksgiving holiday welcoming in the festivities into the end of the year as well. Everyone will start thinking about year end now, and this will open the door for the year end volatility. Markets can often get a little crazy this time of year and it is always worth treading a little more cautiously from the end of November, through the second week of January.
KEEP ON PUSHIN - As far as patterns go, it would be difficult to quantify. Yet, in my experience, it always seems as though trends that are firmly in place continue to push even harder into the final days of the year. So what does this mean? Well, we could see USDJPY push more aggressively through 120.00. We could see EURCHF breakdown below 1.2000. We could see EURUSD drop back towards 1.2000, and we could see the SPX500 push through 2100. All of these trends could very well be poised for reversal already, but the end of the year has a way of milking out the very last drops before reversal. I will continue to take my shots, and still hold counter-trend exposure in USDJPY, EURCHF and SPX500, but will also stay very cautious.