Pristine Market Analysis & Watchlist 12.4

📈Bitcoin Breaks 42k!

• Bitcoin rallies in anticipation of ETF approval

• Market sentiment turns greedy

Team,

We took the foot off the accelerator today Team! Let’s take a look at the risk/reward under the hood. HAGE🍻

-Andrew

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News/Economic Data

Factory orders MoM came in weaker than expected this morning 👇

Yield Curve Flattening

The pace of yield curve flattening over the past month has been remarkable. Lighter than expected inflation data combined with weaker than expected economic data is the perfect recipe for pain for treasury shorts!

Our baseline assumption is that the TLT ETF takes out the upside VPOC at $93.81 by year-end. That is no longer a bold call, as we are trading within 1.29% of that level👇

FX Market

The dollar index chart looks like the TLT chart flipped upside down! Confirmation that the market is pricing lower inflation and growth moving forward ✅

Energy

Crude oil is following a similar trajectory to the dollar index. Crude oil tends to trend lower like this when the market is pricing in an economic slowdown. It is always important to remember that the market is the world’s smartest economist! ✅

Equity Dashboard

Equity indices experienced a minor pullback today, with a noteworthy uptick in implied volatility 👇

The magnificent 7 stocks, which have been the YTD leaders of this broad market rally, experienced profit-taking.

Index Price Cycle Monitor

The Nasdaq undercut the 20-day SMA and put in a distribution day 🟡

Index Performance Monthly

November was an absolutely euphoric month for the market. I do not expect December to be nearly as explosive, but so far the IWM small caps are putting up a fantastic start 👇

In the following sections of tonight’s update, I’ll cover my research in preparation for tomorrow’s trading session

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

✅Market Strategy - Our trading plan

✅ Today’s Trade Blotter and Position Update

✅Daily Watchlist - We scan thousands of stocks and hand-pick the best reward/risk opportunities