Earlier today I wrote about selling the June Dow futures at the 15,000 level. Today’s high was 14,980.
If you were a scale in seller between 14950 or higher, you have a nice profit on a day trade. Currently trading at 14,828 as I write this. That’s 750 a contract on a mini.
It looks like a lot of people are going in to the holiday short the market. The only problem I have with that logic is Thursday night or Friday morning, we could have a market gyration made worse by low volume.
We could very easily take a run back up to 15,000 and then 15200. Right now, if 14,800 fails, we should see 14,600 to 14,500.
If you are short above these levels, I’d move your stop down to the 14950 level Worse case you have a push. Best case, you might catch a 500 pt flush on a panic sell off.
Bottom line, I liked being short against 15,000.
We’ll just have to see how low the bears want to take us.
CER