This is a market of reversals. When Bernanke spoke, admitted the economy sucked, and told us he would create more money to put in the system, we rushed in GREED and euphoria and moved the market up 164 points for the day. This from us, the nation now so worried about the debt we have.
The market went right to our theoretical Dow top at 10,200 and held. Our OTM call stayed steady and remains open. We continue to see a potential upside to 10,416 and will recommend a one side trade only to start the week, again to the call.
In this case we will only trade if we are not chasing the call up. Follow instructions carefully or do not trade, and if futures are extreme, take prudent risk.
Want to understand our use of the theoretical Dow?
Study:
http://www.investopedia.com/terms/t/theoreticaldowjonesindex.asp
To calculate, it's simple. Add + or - 40 points to the actual Dow closing and you'll have a close approximation or enter into your trading software.
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