I’ve Fallen And I Can’t Get Up
This market reminds me of that old commercial, as strength in the financials battles weakness in the techs, and we just drift lower.
The SPU pit is very quiet as most of the locals left, at least those who were short, after the trade through yesterday’s 1509.50 low. Some dealer sell stops were filled down around the 1508-1507 level. Other than that little burst of activity, we have been trading jokes rather than contracts. I equate this type of session with having teeth pulled.
A couple of things I am looking at for the afternoon. Can the NDU catch a bid? Will the financials lead us higher? Will we get some pre holiday volatiltiy? My hunch is we will see 1504 before 1513. Now, I’ll tell you how to use this information for trading. The best trade is to not trade — unless we make a move out of this range of 1498-1522. If either of these two levels are violated, I would go with the trend. Otherwise, avoid these markets.
As for the NDU we have a technically oriented short position that is looking for a trade to 3895. However, with so little interest in the markets, this may not occur until Thursday or Friday.
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