If you haven’t gotten stopped out of your shorts yet, sit tight. Depending on where you placed your stops, if they haven’t been hit yet, resist the temptation to move the stops.
Tomorrow’s settlement should be key. End of week. Middle of the month. Earnings for the most part have been good. Tomorrow’s close will critical.
We may actually be looking at a flood water of new buying in the wings, if we take out today’s highs.
Already, this is the highest settlement since 2007.
If we have a powerful move here, I am not averse to flipping and getting long. If we are going to have over a trillion dollars come pouring back into the market, that’s not something I’d be willing to fade. Remember, for the past 4 years, we have had money sitting on the sidelines. If the pros and the public get back in the water, its going to create a very big wave.
For a spec trade in the cattle, buy march feeder calls 150 calls for 1.70 to 2.00 a contract. For the next 70 days you have unlimited upside potential with a maximum loss per contract of 800 to 1K.
Time stamp it.
CER