Falling Thursday – Futures Down and Our Hedges are UP $7,300

SPY 5 MINUTEThis is what hedging is all about! 

In yesterday's morning post, we listed our shorting line for the Futures saying: "Meanwhile, we're STILL shorting at those same lines we laid out Monday and this morning they are working yet again but, so far, it's been nickels and dimes against quick reversals.  I still think a major sell-off is a lot more likely than a major rally but so far, so wrong."  In our Live Trading Webinar at 1pm, we made our Members another $400 playing the bounce (more this morning as Silver is flying higher) while our short lines were:

  • Dow (/YM) Futures short at 17,500, now 17,350 – up $750 per contract 
  • S&P (/ES) Futures short at 2,042.50, now 2,017.50 – up $1,250 per contract 
  • Nasdaq (/NQ) Futures short at 4,435, now 4,375 – up $1,200 per contract 
  • Russell (/TF) Futures short at 1,091, now 1,065 – up $2,600 per contract 
  • Nikkei (/NKD) Futures short at 17,000, now 16,700 – up $1,500 per contract 

The Nikkei is not a great short as the Dollar will rise when our markets fall and, if oil fails to hold $40, it will likely take the Dow with it – so we'll keep an eye on that.  Our trading rules are very simple, we look for

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