Friday 3 December

Good Morning,

As we anticipated volatility has arrived in January as we approach the new Presidency. Rallies continue to get sold for the fifth straight day as sentiment continues to weaken. It is indeed a rare event to see five straight red days on the S&P so our caution long above 6,000 has been warranted.

The short zone at 5925 worked perfectly yesterday, we bought the first dip at the open at 5880 and closed out at 5920, it came down again to test 5880 which failed and bottomed at 5820 near the 20 week moving average where we saw some buyers. The S&P stands at 5875 currently. The 1 day minimum closing price at 5846 held yesterday.

Sentiment has sharply reversed as we can see from the chart below and is now at the lowest since last April.

2025 V 2018 - The Tariff Years