The first trading day in June the market has been up 8 of the last 10 years. Judging from Friday's last 4 minute end of day 100 point run up, which may well have been shorts covering their positions, we remain with a count of 6 to the call. But, today GM declares bankruptcy. How will the market, and the American people, "take this?"
Do the American people understand this about unemployment? http://www.bloomberg.com/apps/news?pid=20601087&sid=aSc829RcWzSc&refer=home
Day traders were rewarded with our call recommendation Friday during the whipsaw market, and settled for 25% to 30% profits. First or second buys have been made on our June410Put, and we now have a stop loss of Friday of this week on this trade, with the second buy.
Our Dow projections are new for the week. My trading thoughts this week are influenced by what I see as a market ripe for more downturn, to perhaps 7950, or SPX at 800, but the bulls are fighting hard.
Our count projections were too "shifty" last week, as the market has created almost a new "trade range" from 8250 to 8550.
Thusly, we'll open trading this week with a signal to an OTM call, and hold our hedge put trade. The market is showing every sign of becoming overextended.
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