Hello traders and MarketClub members everywhere, welcome back to reality! I hope you all had a wonderful Thanksgiving holiday and a well-deserved break from the markets.
Here we are in December, the final trading month of the year, and what a year it's been. As we move into December, the S&P 500 has gained 14%, even after the big dip that we witnessed in October.
December has traditionally been a positive month for stocks and I suspect that this December will be pretty much a continuation of the bull trend.
One word of warning about December, after about the second trading week in this month, trading volume drops off dramatically as many traders wind down their year and look forward to the holidays and a break from the markets. The reason I mention this is, if you have not made your money for the year yet, the last two weeks of the year are not a time to take big risks and swing for the fences.
IMPORTANT REMINDER: December is traditionally a good month for stocks, but the last two weeks of the year can be extremely dangerous because of the lack of liquidity.
Don't forget to check out today’s video.
Have a great trading day,