YM (DOW futures) closed at 10720 and I'll hold the short from 10733 over the weekend. Stop is still at 10733, break-even. It was a good entry, 4 points from the top, but I might raise the stop, depending on the action Sunday night when trading opens, if we are still open on the trade. If we close the September gaps, I would try the long side for a swing trade. I still think we have more downside going into October, so pick your battles carefully. It might be prudent to sit it out until the Feds meet.
The ES short is still open, with a stop at 1252, although it has risk to 1255, monthly R1. I will evaluate over the weekend.
Everyone is talking about Greenspan not raising rates on the 20th, but I'm not so sure he will oblige. He might view the current equity rally and government cash influx as enough compensation. If that is the case and the markets do not pullback next week, we could have some problems. Market behavior next week will be key in assessing risk reward going into the Feds.
The ES short is still open, with a stop at 1252, although it has risk to 1255, monthly R1. I will evaluate over the weekend.
Everyone is talking about Greenspan not raising rates on the 20th, but I'm not so sure he will oblige. He might view the current equity rally and government cash influx as enough compensation. If that is the case and the markets do not pullback next week, we could have some problems. Market behavior next week will be key in assessing risk reward going into the Feds.
This entry was posted
on Friday, September 09, 2005 at 4:04 PM.
