What a crazy market!
On Tuesday, in the morning post, we put our foot down and called for index shorts in the Futures, saying:
And THAT is why we're short the market here. That's why we're short the S&P Futures (/ES) below the 2,200 line (with tight stops above) and Dow (/YM) 19,100, Nasdaq (/NQ) 4,875, Russell (/TF) 1,330 and even the Nikkei (/NKD) at 18,500 – because that same economy also can't sustain an ever-rising Dollar.
In fact, we called an audible in our Live Member Chat Room at 10:15 to catch the Russell short at 1,335 so really it was a $1,500 per contract gain for our Members but not a bad gain for you free readers either, more than enough to buy you a subscription so you don't miss those extra $500 moves next time, right? The adjustments I suggested to our Members in the morning were:
Oil stocks jamming up the indexes but there's an undercurrent of selling so good shorts at 19,200 (/YM), 2,212.50 (/ES), 4,880 (/NQ) and, of course, 1,335 (/TF). /NKD is no good because the Dollar is rising, now over 18,500 but very tempting to short.
The Dow (/YM) dropped to 19,120 for a $400 per contract gain and the the S&P (/ES) hit 2,195 for an $875 per contract gain and the Nasdaq (/NQ) fell to 4,805 for a $1,500 per contract gain so not bad for a day's work! In yesterday's Live Trading Webinar, we flipped to the Nikkei (/NKD) shorts, as they had the farthest left to fall and, of course, we are still liking the oil shorts (/CL) once the squeeze is over, as we test $50.50 this morning.
Watch for Brent (/BZ) to fail $52.50 and that's game on for the /CL shorts but no shorting above those lines. We caught a $1,000 per contract drop off our first test at $50 yesterday but overnight oil got jammed up again at the Asia open (as they had to square off their accounts at…