Trading will be scarce today and almost non-existent tomorrow with the Christmas holiday. Most of Europe has begun their holiday today. The U.S. turned in a sour performance on Wall Street before going into the weekend using the ‘fiscal cliff’ as the excuse for the sell off. Traders participating in today’s market should be extremely careful of potential volatility that could have little correlation with logical values, particularly in the forex and gold markets. Volumes will be incredibly thin today, this cannot be repeated enough. Gold as of this writing is around 1662.00 USD. The EUR, GBP, and AUD are all maintaining their high values too. The JPY is hovering near its lows versus the USD.
Essentially there will be very little data except from some Asian countries until Wednesday, the States will begin presenting housing numbers then via the S&P/CS Composite-20 HPI. On Thursday the CB Consumer Confidence reading will be published and this may get one or two glances. In essence traders should note that while they may be able to take advantage of thin markets because nearly all institutional investors are gone for the holidays, that they should also be ready for sudden bursts of volatility. Risk management should be the name of the game this week.
Digital Markets Advisor wishes everyone who is celebrating Christmas a great holiday.