I don't know what people are so excited about?
During our Live Trading Webinar yesterday, we called a long on the Russell Futures (/TF) and nailed the bottom at 1,200 with a target of 1,203, paying $300 per contract. We quickly made that money but then there was another chance at 8pm and another at 4am and another at 5am and now the Russell is up at 1,206 with $1,500 worth of gains just from making the same trade over and over and over again.
I you are going to be a day trader – learning to identify channels is the most important thing you can do. We had similar success with our S&P longs (/ES) off the 2,125 line and we just passed our strong bounce line at 2,140 this morning – which is a good place to cash out with a $750 per contract gain on those (see yesterday's post for bounce lines).
As we're flashing more green this morning, we're not looking to go short unless we get signals to do so. You can see what the Labor Market Conditions Index looks like (yuch!) and we have Durable goods at 8:30, Consumer Comfort at 9:45, Pending Home Sales at 10 and the Kansas City Fed Report at 11 – so plenty of data to chew on along with about 200 earnings reports. I see a lot of reds in those reports but the markets are in the mood to rally – so get out of their way for now.
How fragile is this recovery? Well, here's one of those WikiLeak Emails from the new head of the DNC to John Podesta about the mood of the American people:
Here's some quick charts from Harvard via ZeroHedge that illustrate the state of our economy:
You get the picture, but it's a picture that doesn't match the markets, which are still skating along at their all-time highs. Why is it that Apple (AAPL) can have great earnings and great revenues and…