Monday’s shorts are nonetheless going robust.
After all we cashed most out already however even now (7:45), the Dow (/YM) Futures are nonetheless above the 31,000 line, which is our shorting line for /YM and the S&P Futures (/ES) solely simply crossed again beneath 3,800, which is our shorting line for /ES. As I noted in yesterday’s Morning Report:
It is an fascinating technique to begin the yr and we’ll see how issues play out however we’re nonetheless shorting these index traces at Dow (/YM) 31,00, S&P (/ES) 3,800, Nasdaq (/NQ) 13,000 and Russell (/RTY) 2,100 and we might like to see Oil (/CL) nearer to $55 so we will quick that into tomorrow’s stock report as additional OPEC cutbacks aren’t going to make a dent within the surplus we’ve got happening. For now, we will use the $52.50 line as our shorting zone with very tight stops above.
The toughest factor about buying and selling the Futures is all of the NOT buying and selling the Futures you need to do in between. It has been a very long time since we have performed the indexes however we now have a pleasant alignment of fine, strong resistance factors to information us and market situations which can be really toppy so the danger/reward profile brings us again to Futures buying and selling for the primary time in fairly some time.
Sadly, I can solely let you know what’s more likely to occur and revenue from it – the remainder is as much as you. On Monday, for instance, I stated:
In response to our fabulous 5% Rule™, the Nasdaq topped out at 13,060 and 12,900 is the 7.5% line up from 12,000 and 13,200, in fact could be the ten% line and a rejection of that 1,200-point run could be 240-points however we’ll name it 250 and that make 12,950 the weak retrace line. If that holds, we needs to be frightened however, if it fails, the following assist is manner down at 12,700 in order that’s the following shorting zone we will play.
If you happen to missed Monday’s name (and you would not if you subscribed HERE) I’d not chase the Nasdaq this morning however play the S&P because it crosses…