Testy Tuesday – Drifting into the End of Quarter

Wasn't that fun yesterday?  There's nothing like a cool, refreshing dip to wake up a trader on a Monday morning.  I'm sure there were many, many newsletters that gave you trade ideas pre-market to short the Nikkei Futures at 12,600 that ended up being a $1,250 PER CONTRACT on the dip (12,350) and those guys probably also tweeted out, just like I did, at 1:21, that we shouldn't be greedy as we zipped past $1,000 profits in 4 hours, catching the final dip to 12,350 within 5 minutes – so I'm not going to brag about it…

I will, however, remind you that we'll be doing this live at Harrah's Atlantic City this April and I hope to see many of our East Coast Members there.  This morning, our trade idea in early Member Chat was to short oil (/CL) at $95.50 as no good pre-market pump job at the NYMEX goes unpunished by us these days.  We caught a nice ride yesterday from $95.50 to $94, but only after being burned on two crosses on the way up.  Still, these are very nice ways to pick up a few bucks in a market downturn without having to scramble in and out of your main positions – especially in this crazy market where the drops tend to get reset in 24 hours or less.  

As you can see from our Big Chart, our premise that we're simply consolidating into the End of Quarter on Thursday remains sound with all of our 5% Rule levels holding up so far.  Bad news for the Bulls is that the S&P is having trouble with it's 7.5% line on the way up – and that's not a good thing.  

Our other indices are holding on like champs with the Russell just over their 7.5% line, the Dow over it's 5% line and both the Russell and the NYSE right on top of their 12.5% lines so, in general, still very strong looking and still amazingly accurate for lines we predicted way back in March of 2009 – especially in light of these consolidations, which only serve to confirm the strength of our 5% Rule.  

We'll continue to call this "healthy" consolidation but that S&P needs to get over before one of the others gets dragged down by it's weight.  Keep in mind, not all indices are…

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