Go For The Throat

Finally,
Labor Day has passed and
better trading days are surely ahead, as
trading desks are back to full staff and the market has temporarily broken its summer
trading range. I am not going to go in depth for today’s piece, after a long
relaxing weekend my creativity is a bit muted, my focus right now is attacking
the market if the opportunities are there.

I will leave you with these thoughts
and the KTNs.

Remember the basic rules:

  1. Trade with the trend and focus on
    stocks that provide adequate volume and range
  2. Base your entries on the direction
    of the futures, the thick liquid stocks don’t deviate from the futures
  3. If the volume and range are there,
    step up and go for the throat. We have had three to four months of quiet
    markets, take advantage of volatility while it is there.

At 10:00 a.m. ET today, we have the
release of the NAPM. The market is looking for 43.2%. Any surprise significantly
above or below that number should offer some great trades for those who are
nimble on the keyboard.

Key
Technical Numbers:
(futures)

S&Ps

Nasdaq
1150.03
1539.75
1143.57 1512.83
1135
1506.83
1130
(confluence number)
1492.67
1127
(confluence number)
1468.83
1119
1456.75
(confluence)
1110.56 1448
1424.83

Thought For The
Week

“Man’s
greatest enemy in speculation is ‘hope’. He
refuses to face facts, and facts are stubborn things.
Hope spurs us on. It may be an
anchor to the soul, but a very slim anchor in speculation, when facts are
against us.”

 —Henry Watson

Have
a great trading day. I will be in TradersWire Interactive sharing my
observations. Feel free to send me your comments and questions.

Dave