Although the S&P 500
(INDEXSP:.INX) lost about 1.5% this week, I believe stocks want to move higher. Pre-market futures indicated a higher open for each of the five trading sessions, only to be pressured lower during trading hours on worries over the fiscal cliff. Once a resolution to the fiscal cliff is apparent, expect a significant rally.
Next Week's Market Moving Events:
Monday: Oil prices may gyrate as tensions between Israel and Hamas continue to rise. The existing home sales report at 10:00 a.m. EST will be the key economic report of the day.
Tuesday: Housing starts data is released.
Wednesday: This will be the week's busiest reporting day and is also likely to be a light volume day. Jobless claims, consumer sentiment, leading indicators, and EIA petroleum reports are all on tap.
Thursday: Happy Thanksgiving
Friday: Expect light trading volume on this half-day. Should there be a rally, investors might be able to take advantage of some option pricing discrepancies today.
With politicians on holiday, action in the Middle East heating up, and our expectation for a volatile December, continue to take advantage of any broad market rally to sell weaker names and buy puts for your portfolio.
Follow Oliver Pursche on Twitter: @opursche.
No positions in stocks mentioned.