Today, tomorrow, and Monday. That’s all we have left of the 2018 year in equities. This bipolar market has even the professionals pulling their hair out; Monday’s despair vs. Wednesday’s relief.
Here’s how I think the S&P500 plays out to end 2018 and you can take advantage whether you’re a short-term trader or a long-term investor. These are just gut-guesses that also influence my own decision-making process.
Thursday (12/27/2018) – I suspect we’ll get a flattish (up 0.25% to 0.50%) day. But the pros are smart and they’re going to harvest their tax losses and perhaps perform some year-end window dressing
Friday (12/28/2018) – Down between 1.25% and 2.8%. This will freak out entrants who will feel they waded back in too early.
Monday (12/31/2018) – Down 3.5% to 4.9% and we erase Wednesday’s recovery.
I can easily see the skilled timers across all genres of the investor universe using the unskilled timers for lipstick-on-pig returns to dress up their 2018 performance against the damage of Q4.
Then get ready for a great H1 2019.