Tomorrow we will find out the December un-enjoyment figures. While any one’s guess is as good as the next economist’s projection, the key will be the 10 percent figure. If it comes out at 9.9 percent, the cheerleaders will be dancing in front of their respective tv cameras. IF it comes out at 10.1 percent, there will be weeping and gnashing of teeth once again. Not much of a choice either way. However, my advice is to let the smoke clear before putting on a trade.
Barring that, I would suggest at sell order in the Dow futures about 100 to 150 points resting above yesterdays high. Yesterday’s high tick was 10561. So go at least to 10661 to 10700 with a resting sell order. Of course you need to have a buy stop resting above that level. You get to pick how much you’re willing to lose. Just make sure you have a buy stop.
Conversely, yesterday’s low was 10455. Look to buy the first 100 to 200 point melt down on the number. Again, you have to have it loaded up, and you have to have your sell stop loaded up below your resting buy order.
Either way, you’ll be positioned to take advantage of the initial panic one way or another when the number comes out at 730… Just make sure what ever you do, you have a stop order already sitting on the screen. Don’t wait, because if it really moves, there’s no way in hell you’ll be faster than the flipping computers. And make sure your stops are market orders. No stop limit garbage. Just pay up if you are wrong. Don’t get left with a market limit order and compound your mistake.
I suspect the number will be worse than anticipated. But that’s just my gut feeling. I base that totally on the sheer number of Democrats in Congress who are retiring currently. I wonder if they got a heads up, and are just bowing out rather than suffer the slings and arrows when shouts of, “throw the bums out” raise up in the mid-term elections. But, again, I could be wrong. Its just my opinion. And opinions are like belly buttons. Every one has one.
Good Trading
