We've seen increased volatility to the downside, and with conviction as the volume with the sell offs has been considerable. If you happened to listen to me weeks back or so and bought ZB 30 yr Bond, well congrats you've done quite well with that trade! :)
If you read this last review I was also talking about GC Gold contract going lower from our target @ $1218. If you saw today we are now at around the $1192 level. Allot will be seen if we can hold this level as support, if it gives way it could get ugly to the downside with Gold going much lower. Be on the lookout!
Lastly, as the NFP numbers came out this morning with jobs up to 248k and unemployment dropping from 6.1 to 5.9 this should have been huge for the markets. The overnite session was already up 60-70pts on the emini Dow and the emini S & P 500 up as well but the initial reaction was just kinda blah! Folks if we don't see a massive up day today like 300pts or more in the Dow and ES 30pts or so it really concerns me that this market may continue to roll over and die. We've seen the Ebola scare drop the markets over 220 pts in the Dow in one day and if we have another verified case it won't be good but could get quite ugly in the markets. We have so far seen about a 3% correction but if markets don't rally hard from todays job numbers and resume this massive Uptrend in the indexes I would expect to see up to a 10% correction in the markets.
Please be careful out there, and remember don't let a winning trade turn into a loser! Always have a target set, don't be greedy, hit your target or close to it, take your profits and get the heck out of dodge!
have a great weekend, don't forget to sign-up for my e-mail list for regular updates :)
-david
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