Wheeeeee – what fun!
Over and over again they take us back to 18,500 on the Dow Futures (/YM) and 2,180 on the S&P Futures (/ES) and over and over again we short them and pick up $250-500 per contract. It's a suckers game and we're the guys with the cups challenging the bulls to find the red ball and the bulls are certain it's under one of those cups – just never the one they pick.
It should be like shooting fish in a barrel, making money in this market yet the average hedge fund is up 2% for the year, well behind the 6.5% gain in the S&P. Yesterday, as we predicted in our Morning Alert to our Members (and tweeted to the general public – as we do from time to time) the market took a nice dive and though it "recovered" to 2,175 on the S&P, the huge declining volume told a very different story.
I simply run out of ways to tell you what a horribly rigged market this is and that the "rally" is nothing more than a prop job to keep you buying at the top while the "smart money" runs for the hills. What I said to our Members at 6am was:
Dollar is still diving, testing 95.50 and the indexes are up a lot less than the Dollar is down so huge grain of salt to be taken on the Futures, which are at 18,500 (short on /YM there), 2,180 (good on /ES too), 4,800 (good short for /NQ), 1,232.50 on/TF (also a good short) and 16,800 on /NKD (yet another good short). Well – I guess I still like the shorts here!
The Dow bottomed out at 18,420 for a $400 per contract gain.
The S&P bottomed out at 2,168 for a $600 per contract gain.
The Nasdaq bottomed out at 4,770 for a $600 per contract gain.
The Russell bottomed out at 1,220 for a $1,250 per contract gain.
The Nikkei botomed out at 16,650 for a $750 per contract gain.