OP Wire 12/23 (OP – Lite)

By Steve

OptionsPlayers Premarket News: Holiday Week Trading and Key Market Insights

This week is expected to be relatively quiet in the markets due to the holiday schedule. The New York Stock Exchange will close early on Tuesday for Christmas Eve and remain shut on Christmas Day. Here’s everything you need to know to stay informed and prepared.

PCE Data Shapes Rate Outlook

November’s PCE price index—a key inflation metric for the Federal Reserve—rose 0.1%, down from October’s 0.2%increase. This brings the annual inflation rate to 2.4%, slightly under expectations of 2.5%.

While the data shows signs of cooling inflation, it remains above the Fed’s 2% target, signaling persistent underlying inflationary pressures.

The Fed took a cautious tone last week, reducing rates by 25 basis points and projecting just two rate cuts in 2025, down from the previous forecast of four. Officials also cited fiscal uncertainty, such as tariff policies under the Trump administration, as a factor in their projections.

Wall Street Volatility Persists

The Dow Jones Industrial Average experienced a 10-day losing streak last week, the longest since 1974, dropping over 1,000 points after the Fed’s revised outlook for fewer 2025 rate cuts. Cooler-than-expected inflation data on Friday helped markets recover some losses, but volatility remains a key theme.

Month-to-Date Performance:
- Dow: Down 4.6%
- S&P 500: Down 1.7%
- Nasdaq Composite: Up 1.8%, bucking the trend

Looking ahead, Yardeni Research predicts significant market volatility in January as the Trump administration prepares for potential policy changes. While this could create uncertainty, it may also present opportunities for strategic buying.

Corporate Spotlight: Rumble Soars

In corporate news, Rumble (NASDAQ:RUM) surged over 45% in premarket trading following a $775 million investment from Tether, the digital assets company behind the USDT stablecoin. This partnership marks a significant boost for the online video platform.

Oil Markets Hold Steady

Crude oil prices remained stable after last week’s losses, supported by averted fears of a government shutdown and cooler inflation data.

WTI Crude: Down 0.3% at $69.23/barrel
Brent Crude: Down 0.4% at $72.34/barrel

President Biden’s approval of a stop-gap spending bill through March avoided disruptions during the busy holiday season, providing stability to fuel demand.

Technical Market Insights

Last week, the Nasdaq ($NQ) saw a significant 2ATR weekly expansion move, signaling potential compression this week. With the market closed on Wednesday and a half-day on Tuesday, a slow trading week is expected.

Key Levels to Watch

Upside: 21,700, 22,000, 22,400
Downside: 21,430, 21,200, 21,000

Price Action Insights:

Sellers aim to hold below 21,700 to test lower levels.
Buyers reclaiming 21,700 could push prices toward 22,000 and higher.

Notable Economic Data

Thursday: Jobless Claims

Take it slow this week, OP Fam. Focus on capital preservation and enjoy the holiday season! We’ll see you all in chat for any market updates.

#OptionsPlayers #TradingCommunity #HolidayTrading #StackYourGains

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL