Exchanges To Open Monday
U.S. stock exchanges are closed again today, marking the first occurrence
since World War I that the markets have been closed for three consecutive days. It was announced around 3:10
p.m. ET that the exchanges would remain closed until Monday, 9/17.
There was limited trading in the futures markets this morning, with trading
closing at 2 pm EDT. However, trading was very thin and several brokerages
stated that the most prudent course of action is not to take on any new
positions. The Insights From The War Room will
report on futures markets if anything develops that could affect trading.
Bond yields in two-year notes are
2.99%, the lowest since Ike Eisenhower occupied
the Oval Office.
The London Stock Exchange FTSE 100 index rallied for the second straight day,
up 61.50 to 4943.60.
I have received several e-mails asking what I feel this market will do and how
to proceed when it does reopen. I think my friend Dave Landry could not have
stated my exact feelings any better this morning:
“As traders, we are strong
believers in capitalism. However, we must not attempt to
benefit from these events that have targeted our
colleagues directly. This is where I am having the
most difficulty. Over the past week, we have been taking short positions in
stocks. Obviously, these positions will
likely benefit from this horrific event. Although we should not feel guilty for initially taking these positions during normal
times, we are now faced with the possible
dilemma of continuing to benefit after this catastrophic event. After careful thought, the best answer to this dilemma is to do
what the market dictates. I would imagine
that there would be an initial knee-jerk reaction to the downside when trading resumes. After this, I think the market will
bounce. Therefore, the logical action would be to
exit existing short positions.”
For some excellent ideas on how to
approach this market when it re-opens, take a look at the strategies
of Kevin
Haggerty and Tony
Saliba in the lessons section.
We are attempting to set up a relief fund for the New York City
and Washington D.C. victims of the 9/11 terrorist attacks. I will be
posting more details as they come about in the Insights
From The War Room, TradersWire Interactive and Live From
TradersWire. You may also email me at dukeh@tradingmarkets.com
with a request for more information when we get the fund in place.