Woman: I'm not a witch! I'm not a witch!
Vladimir: ehh… but you are dressed like one.
W: They dressed me up like this!
All: naah no we didn't… no.
W: And this isn't my nose, it's a false one.
(V lifts up carrot)
V: Well?
Peasant: Well we did do the nose
V: The nose?
P1: …And the hat, but she is a witch!
Carrot noses and pointy hats do not a witch make.
Low volumes and false promises do not a rally make either. But how can we tell a real rally from a false one? Clearly the answer is "a duck" but, if you are not a Monty Python fan, then perhaps you would prefer something a little more technical. We had a nice, technical discussion in our early morning Member Chat at PSW (tweeted out as well!) and our morning trade idea to short the Nikkei Futures (/NKD) at 16,000 is already up $125 per contract and looking good with the Dollar testing 81, Oil (/CLG4) Futures once again made a good short at $99 and those are already up $300 per contract at $98.70.
As my Members know, my retirement plan is to move to Europe so I can have a nice breakfast, read my paper, make a couple of Futures trades and be done for the day before lunch. It does, however, take a lot of practice to learn to trade the Futures and we had a great discussion about it in yesterday's Member Chat and it was a topic at our Las Vegas Conference in November and it will be again in Atlantic City this April. Meanwhile, get yourself a paper-trading account and practice, Practice, PRACTICE!
Meanwhile, I wasn't going to talk about the news because we are trying to get more bullish (though not until these levels prove out, of course) and we do have tons of bullish trades (see Wednesday's Free Webcast if you are not a subscriber to our Members Only posts) and we'll be happy to execute them in January – AFTER we clear the holiday hurdle.
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