The market had a tremendous year after 2022 bear market. Many investors and pundits refused to accept it, some still continue predicting doom and gloom. We rallied but later, we see a market consolidation in place. The market started turning lower last few weeks and it really seemed that it will flip to a correction. But this week’s trading put the market back to a consolidation pattern.
And as we all know, the ,longer the market stays in this pattern, the more meaningful it will become. This would replace any corrections doom and gloom predictors are calling for. But it still wouldn’t create a “safe bet” on the direction of the market after this consolidation.
If the market breaks up, we should see a rally as strong and convincing as this consolidation would be. If the market break down, the same would apply.
This sideways move is great for our Iron Condors. We had another great trade that expired today. And I could pull a slick trick. The trade expired today at 4:00 pm ET and I could immediately flip the released buying power and open a new trade after hours with tomorrow’s expiration. It could bite me or play out perfectly. However, tomorrow is Friday and I do not expect any violence on the floor tomorrow. We will get employment data tomorrow before opening but I do not expect any turbulence. Today’s jobless claims didn’t shake the markets and I expect the same with the jobs’ report tomorrow.
Here is our trading report so far.
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