Its Wednesday Jan 2nd at 8AM CST and the high in Dow Futures so far is 13,255. Monday’s Panic low was 12.742. 5th grade math tells you That’s 513 points from panic low to today’s high.
I can only hope you followed along and at least covered shorts on buy stops. If you didn’t worse case scenario you lost 2500 on every mini you were short. Not a good way to start 2013.
On a positive note, Where is there resistance above? 12,270, 13,300 and then the 13,318. Once those fall, you have to look at the contract high at 13,496, going back to September, October highs from 2012.
I wouldn’t want to be short anything here for the next week or two. The party hats are out, and the buying shoes are on. If you sell at old highs as a contrarian move, then please have buys stops in place to protect you from further irrational exuberance to the upside.
Today’s move in the Dow should be your cautionary tale for some time to come.
Ideas are only good if you make money. And if you are wrong, you have to run and run fast, or you can get your limbs amputated.
Last time I checked, there was no bail out plan in Washington for speculators who don’t manage risk.
CER