Last Thursday before Mr. Bernanke spoke, I listed 11,674 as a sale level in the Dow.
This morning, after the unchanged employment figure, the market has given us the chance to take out 378 point. That’s $3,780.00 for every contract you have on.
I would cover 2/3 of the position for a profit. I would put a buy stop in at 11,450 to 11,550 on a buy stop on the other 1/3.
That is all for this morning. I thought the bounce was over done. A relief rally after the contrived panic of August.
I really don’t know where this Dow is headed. I am leaning towards my original idea, that we will trade in a 1000 to 1500 point trading range. The trade will be violent. The trade does not like uncertainty. We are entering in to the silly season of Presidential Politics where truth and clarity go out the window. Those are replaced with hype, hyperbole, and outright lies from both the Left and the Right.
Personally, I am turning off the TV news for the next year. The whole process upsets me. My guess is, the markets will feel the same way.
We are entering into the long Labor Day weekend. I may have another entry to day or I may not.
Have a great and safe weekend, no matter what.
CER