Sometimes its better to be lucky than smart. Back on the 9th an 10th of October I put in some resting orders to sell Dow Futures at 11,475, 11,500 and 11,525. They all were filled yesterday. Quite honestly, I thought we were going to run up to 10,800 level.
Fortunately, We never got above 11,600, so my buy stops never got filled.
I mentioned yesterday that it might be a good idea to fade the bullish fervor I saw and heard on the Cable business channels. We are trading at 11,350. I have covered 1/3 of the shorts. I am leaving the stops on the other 2/3 of the position.
I am not sure, but we could have a break down to 11,100 or even 11,000 even.
As the market moves lower, I will move my buy stop lower as well.
CER