If you go back an look at my recent posts, you will see that I was cautiously bullish down here at these levels in the market.
It seems that things are sufficiently bearish now to generate a short covering rally. We have unemployment Friday. I could see a rally right up until that number and then a re-flush to the down side, if only short term.
If the market gets bad news Friday morning, with higher unemployment, and is able to rebound and remain above the 10,000 support, I would look for a continued throw in the towel rally by the remaining bears.
Just make sure you have protection with sell stops if you are looking for good buy levels.
10,000 matters. Don’t pretend that it doesn’t. As these markets have become political footballs, unfortunately, the republicans are rooting for Dow 6000 and the Dem’s are rooting for Dow 12000. I don’t think either one of them is going to be happy.
Good Trading
The grains have had their flush in the beans. I still am waiting to see what happens if we get March corn below the 350 strike. I think at that point the funds hit the defcon 5 button, unload the last 40K of wrong long contracts, and then probably go short, looking to push the corn to the 325-313 level.
Good Trading
