HAPPY NEW YEAR 2021 TO OUR READERS!

The stock market closed the year at the highest level of 2020 but failed to open with a bang which is usual for the first trading day of the year. According to the adage of the trader’s almanac, January is setting up in most cases the tone for the year; still we are only at the beginning of the month.

The model improved somehow during the holiday’s season although there is still some way to go to reach at least the neutral level.

Few observations from Monday’s session: selling was broad based: 1346 stocks advanced on the NYSE whereas 2798 declined, the tick index closed negative at the close, a long time it didn’t happen and the Vix index jumped to 27. Options trading was fairly neutral, the Skew index and the daily compilation of sentiment are still in the red zone. Finally, our short-term trading model has started to turn down.

Very short term oscillator	Negative -
Short term oscillator	Negative -
RVI trend	Negative -
Trend short term (5 days)	Down ​​
Trend mid term (8 days)	Down ​​
Differential of trends	Up ​​
Risk profile	70 (scale of 1 (low risk) to 100 (high risk))