The day after Labor Day the Dow has been up 12 of the last 14 years. Friday the market was massively flat, but allowed all call traders to exit profitably right near end of day with a 60 point move up.
Many day traders also reported trading in and out on the fluctuations around the unemployment report (it's only 9.7%, or "real" at 16.7%) on both put and call, as the market moved from a 9486 theoretical top to a 9281 low.
Calls were profitable for as much as 50%. With futures flat, no entry would have been taken to the put, and we have no open signals.
With the count at 6 the bias is more clear to the call, despite overbought conditions, any good news could lead us up more. The euphoria seems not to "consider bad news" what it is right now unless led by a downside start in Europe or Asia, which is usually the reverse. We'll lead with a call, and no new signal to the put, pending how bias is established and if we reach market tops early in the week. The market may be setting up for a fast consolidation that could yield superb returns; we'll advise as the market moves.
America remains a split nation, fighting amongst the 540 thieves of Congress playing solitaire during meetings, or the RNC "staging" false facts around Town Hall meetings.
No comments:
Post a Comment