Pristine Market Analysis 12/30

Tech shorts beware

Good evening everyone,

If you are reading this, that means you survived one of the most treacherous years in recent history for global asset markets. Cheers to you for having the mental toughness to navigate these tough conditions 🍻

Whether you had your best year yet, or your worst, it is now time to wipe the slate clean and focus on having an excellent 2023!

-Andrew

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Market Dashboard

• 40.6% UVOL - Mixed breadth

• Pullback across most indices, with all closing toward the high-of-day💪

S&P 500 ES_F Price Action Analysis

• Daily higher low and remained inside the two-week balance area

• We will have a new monthly value area on Tuesday, and we closed right at the new monthly point of control 🎯

Finviz Heatmap

• Energy led the way on the final session of the year

• TSLA third consecutive green trading session!

Nasdaq QQQ Short Interest

• With short positioning in the Nasdaq QQQ at a decade high, and tax loss harvesting in the rear view, I would be concerned if I were short technology into the new year

Nasdaq NQ_F Price Action Analysis

• Daily higher low and a finish on the highs!

• Price failed to revisit the prior lows from 11/14 and 10/13 🚨🚨🚨

Sectors - Ranked by Momentum

• ITA Aerospace & Defense is in our top momentum slot! Not the best look heading into the new year

• XBI Biotech top performer for today’s session

End of Year Thoughts

• It is tough to divine huge meaning from the final day of price action for 2022. The trades and investments an institutional money manager can make on December 31st vs January 1st can be vastly different, as the former is the final day of a performance year, and the latter is a clean slate! I am heading into next week with a flexible mind, and my goal is to flow like water with the market

• If you have goals for how you would like to approach the market in the new year, and/or have a finished trading plan, I highly recommend printing it out and keeping it by your desk somewhere you can see it! It is easy to forget things in the heat of the moment when the market is moving!

• If you haven’t started your trading plan yet, I highly recommend checking out our Path to Victory Trading Calculator: Pristinecapital.net/tools

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In the following section of tonight’s update, I’ll cover the following:

✅ Trend Model Access - Our proprietary indicator that informs us on how aggressive/defensive to position in the market

✅ Trade Blotter

✅ Position Update

As always, our weekend macro analysis and watchlist videos will be sent to all premium members on Sunday. Stay tuned!