Wheeeeeee – what fun!
I know, you thought I was going to be wrong, didn't you? Yesterday morning we said: "we're expecting to see 0.5 to 1% bounce before we head lower again" and, in our Live Member Chat Room (because we ran out of free picks for the week) we set our official strong bounce targets at:
- Dow – 17,659
- S&P – 2,044
- Nasdaq – 4,730
- NYSE – 10,735
- Russell – 1,174
It seemed like we were going to break higher as the Dow topped out at 17,758 heading into noon with the S&P 2,055, Nasdaq 4,759, NYSE 10,786 and Russell 1,180 but, fortunately, we were keeping our eye on the volume and, at 9:54, while the S&P was rocketing higher, I commented to our Members:
So, as usual, the RUT is in the lead with the Nas right behind and those are our manipulated indexes so we want to see volume to confirm the move. Yesterday, we had strong down volume (152M on SPY) with decliners outpacing advancers by about 5:1. Today, so far, just 12M on this "rally" – which is just nonsense that can be erased in minutes by a single fund hitting the sell button (average share is $50 so $600M selling would wipe this gain out).
We don't just make picks at PSW, we teach our Members HOW the markets work so they can better understand the intra-day as well as the long-term moves which then helps them to make much better trading decisions. Fortunately, our trading decision, at 11:54, was to stick to our guns and short the Futures across the board:
At this moment, in the Futures, I'm watching 17,750, 2,055, 4,300 and 1,180 and playing short the laggard. RUT bounced me out but up $370 was worth doing and I really like /NQ not to make 4,300 as a bet at the moment (4,293.50) and, of course /YM 17,750 as my key shorts (unless /TF tests 1,180 again).
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