Hope you took profits down below 13,000 as I requested. Dow futures are now poking at the top of the range. REMEMBER back on June 4th we traded down below 12,000 , with a low tick at 11,884. In 3 months we have returned to the top of the range. 1,424 points wide. Its about time for Dem’s to take credit for the warm fuzzy the stock indexes are enjoying currently. Too bad we can’t have Clinton give a speech every week. That was one of the greatest political speeches I have ever watched. He has a great style. A la Reagan. Even if you don’t like his politics, he cuts to them middle and changes the game for the better. The older he has gotten, the more pragmatic he has become. Anyhow, what ever your politics, be you a closet Lenin or a closet robber baron Darwinian capitalist, you have to admire his ability to move people. That’s a true gift.
Ok, back to the stock indexes. Tomorrow’s Un employment may have leaked early. Maybe they will try to get the number below 8% in front of the election. Today’s action looks like that to me. Tomorrow at 7:30 it may be a buy the rumor sell the fact.
My advice….Original shorts should have already been stopped out on this rally. The levels should have allowed good profits on 2/3 of the position and a scratch, or a push on the other 1/3.
In the old day’s I’d have resting sell orders 100, 150 and 200 pts above the market going into the number.
However, I’d also have resting buy orders 100, 150 and 200 pts below the market going into the number.
This lets you get positioned for an initial flurry coming off the number’s release.
If you follow this strategy, you have to be in front of a computer. You have to be able to cancel all working orders the moment you get filled on any resting order.
Once filled, you have to IMMEDIATELY place protective stops to prevent un necessary losses. If things work out well, you should be in a position to benefit from 7:30 to 7:35.
For a longer term trade strategy… Have nothing working. Wait til about 8:30 to look for an opportunity.
CER
