DailyPlay Update – December 22, 2022

Stocks got a rally right on cue from what was my downside target of 3814, surely aided by solid earnings from both Nike and Federal Express and the best Consumer Confidence number since April. The SPX jumped 57 points to 3874 and marked its second up day in a row.

Today and tomorrow are really the last two days of the year that most PMs are likely working, meaning that they will finish adjusting their positions to be the way they want to end the year with, barring something unexpected happening next week. Personally, I’m not looking for a move to get materially above the 3948 level (highlighted on the daily chart below in a yellow ellipse), so it would indeed surprise me to see anything meaningful above there occur in a Santa Claus rally.

SPX – Daily

If I’m not mistaken, we have four conditional trades still awaiting entry. I’d like to see us get into any/all of them by Friday’s close (not because they couldn’t be possibly entered into next week, but because I am off next week and we will not be writing Daily Plays next week (nor doing any webinars). So, it’s your choice if you want to enter any of these ideas should their entry price zones be achieved after Friday.

There isn’t much to do with the current open positions I’ve gotten you into. The TSLA looks like we’ll lose our entire paid-out premium, and with 9 days to go till expiration, we might as well see if there’s any considerable rally to come to reduce that full loss from occurring. Should th stock see a large one-day upmove in the next few trading days, take advantage of it to exit with a slightly better price than where it’s at now.

The one thing I will do today is if GE is trading down on the day going into the close, let’s take off 1 of the remaining 3 short call spreads we have on. Otherwise, we’ll just sit tight until January.