Don’t let Cupid’s arrow allow you to fall in love with your positions. If you are on the wrong side of the market don’t be afraid to cut bait and move onto the next trade. Manage your risk wisely and don’t let the market leave you broken hearted.
THE DATA
Jobless claims posted a 27,000 decline from the prior week. The 341,000 claims came in below the consensus expected range of 350,000 to 375,000. This helped the four week average move down 2,250 to 350,500, more than 15,000 lower than it was in early January. Continuing claims ticked up by 8,000, leaving the four week average close to unchanged.
KEY LEVELS
The March S&P has closed above 1510 for the last four sessions. The next long term resistance should come in near 1520. I think that the bulls may try and push this market up, but it will not be an easy climb up to that level.
In my opinion, short term traders should be looking for buying opportunities on breaks below 1512. I think this market will try and test the overnight range (1510-1518) throughout the day. I believe 1515-1517 should be a good spot to cover any long positions. Aggressive traders may want to stay in the market longer to see if it can put in a new high. I think the market may give traders multiple opportunities to scalp throughout the 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.
