Wheeee, what fun!
Clearly investors do not have a clue what's going on as we are in what we like to call a "Bugs Bunny Market," where he throws a switch and everyone stampedes in and out of the theater (5:00 on this video). That's what the Fed has been doing to investors but don't blame the Fed, blame the clueless investors who have no actual investing premise other than whatever they think the Fed will do. Obviously, you can't have real price discovery when there are dozens of major stocks trading at hundreds of times earnings – the room for correction is always a huge overhang.
We're well-hedged and could really care less, though we would like to see a nice correction so we can finally go back to our Watch List and turn it into a Buy List again at reasonable prices. I called yesterday a "watch and wait" day as we expected to see some bounces and, of course, they were more than we expected but, by 3pm, in our Live Member Chat Room, we had enough watching and I made this call:
I like /ES short at 2,150, Dow 18,250, Nas 4,750 and RUT 1,225 are our other marks with /NKD 16,700 and Dollar 95.06 needs to stay above 95, of course. Oil closed at $46.20.
As you can see, at 2,137.50 we're already up a quick $650 per contract this morning (and we expect lower still). Trading Futures is one of those fun things you can do with your sidelined CASH!!! when you are bored but we had to wait PATIENTLY for the right opportunity to go short again – almost all day yesterday, in fact. Keep in mind though, that Futures trading is tricky and requires a lot of practice – we'll be doing a Live Trading Webinar tomorrow at 1pm, EST, and we'll discuss some of our Futures trading techniques but remember:
You've got to be crazy, you gotta have a real need
You gotta sleep on your toes,