Hurricane Sandy caused the NYSE to shut down for two days this week, the first weather related closure since Hurricane Gloria in 1985. It was the first time since 1888 that weather caused the Exchange to be closed for two consecutive days. The CME followed along and closed all equity index futures products as well. The markets are open again, but many people (traders included) have bigger priorities than trading right now.

A few positive numbers gave traders something to be optimistic about this morning. Jobless claims fell 9,000 to 363,000. This brings the four week moving average down 6,250 from the previous week. We also saw the private sector add 158,000 jobs, a possible indicator ahead of tomorrow’s Bureau of Labor and Statistics employment reports. Consumer Confidence rounded out the good news at 72.2, up from 68.4 in September.

S&P ACTION
Due to the unusual circumstances Sandy has given us, I am very cautious today. The December E-mini S&P 500 futures contract pushed above 1420, an important level for bulls. The market has moved out of the channel from 1390-1415. This morning’s reports may be enough to keep momentum to the upside.

QUICK LONG TRADE
Watch for the market to trade near the 1420 level, testing resistance near 1424, and support around 1418. I like entering from the long side below 1420, happy to grab 2-3 points on exit. If support doesn’t hold at 1418, the rally may have failed and we could push down to 1410 again.

The storm, tomorrow’s labor report and next week’s election should cause traders to be a little more careful today.

Don’t get too greedy and be willing to take small profits. Come back to trade another day.

THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.
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