Are you taking Christmas Eve off? I’m Not + Here’s Why

Hey there Trader,

Often, traders take Christmas Eve off.

After all, the market is only open until 1pm EST.

But taking today off is a mistake, and I’ll tell you exactly why I’ll be looking to be in–>out of quick positions in today’s trading session.

First, let’s talk about yesterday.

As we predicted, the air came out of the VIX.

At one point it was threatening to break 22.  

Thanks to a nasty end of day sell off, it stayed above 23, but still closed down about a point.

January VIX futures took a nice hit to the face dropping 1.15, and the curve went back into a contango, shown below:

All this goes to say… I think the easy money has mostly been made by being short volatility.

This is why I spent most of the day yesterday closing existing short volatility positions.

In fact, given the risks over the weekend with the stimulus bill, I would not be surprised to see volatility go up a touch as the day progresses today.

Knowing most of my positions are closed I’ll spend the few hours we are open today looking for trades that I can flip out of in an hour or two.

Days when the market is going to be slow (like today, Christmas Eve) can be great trading days because the market whips around more than most traders expect.

And just because it’s a half day, doesn’t mean I am taking the day off.

The only thing I want to take off ever… is winners. 

LIke the ones I took off yesterday, which were set up on Monday’s huge VIX spike.

Forecast: The VIX light is RED.

Your Only Option, 

Mark Sebastian


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