Check out our Big Chart. Check our our bounce levels, which I posted on Monday and still are:
- Dow 12,720 weak, 12,950 strong.
- S&P 1,375 weak, 1,400 strong.
- Nasdaq 2,900 weak, 3,000 strong.
- NYSE 8,000 weak, 8,100 strong.
- Russell 790 weak, 805 strong.
Just two days later we're right in the zone and – most importantly, our weak bounce lines held on yesterday's dip – that's a very good sign.
The best thing about re-establishing trading ranges is that it lets us take advantage of channel bets like yesterday's USO trade from the morning post, where we caught a nice 50% gain for the day and we took that money and ran as oil tested the $86 line – just $1 off our target without all that tedious waiting… Of course the Futures bet on /CL was well-timed and a $3 move in the Futures pays $3,000 per contract so thanks to the oil crooks for being so predictable. We got our cease-fire rumor in the Gaza and that was all it took to knock oil back 3% but it was a rumor only – which is why we quickly got out and now, maybe, we'll be able to do it all again on a new set-up (oil currently back at $87.50).
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