Thursday Failure – Big Bounce Lines Falling Short Ahead Of Quad Witching

So close and yet so far.  

Last week, we set our 5% Rule’s™Â “strong bounce” goals for this week at Dow 16,300, S&P 1,860, Nasdaq 4,300, NYSE 10,400 and Russell 1,190 and yesterday we finished at Dow 16,222, S&P 1,860, Nasdaq 4,307, NYSE 10,359 and Russell 1,195 – not bad for estimates made a week ago but still not good enough to flip us bullish again.

Of course, we knew that yesterday morning, when I called for shorting the Futures at 16,300 on the Dow (/YM), 1,865 on the S&P (/ES), 3,700 on the Nasdaq (/NQ) and 1,200 on the Russell (/NQ) and this morning we’re at 16,100 on the Dow for a $1,000 per contract gain in 24 hours, 1,848 on the S&P for +$850 per contract, 3,665 on the Nasdaq for +$700 per contract and 1,187 on the Russell for +$1,300 per contract 

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In Friday’s post, we were shorting the S&P Futures at 1,870, that’s another $500 per contract if you were paying attention at the time!  In Tuesday’s Live Trading Webcast (replay here), aside from reiterating our Futures shorts, we also added the WYNN March $230 puts at $1.05 at about 1:30 pm and they closed the day yesterday at $2.40 – up 128% but we took the money and ran at 65% – we’re not greedy…

They aren’t all shorts.  We went long on oil (briefly) yesterday morning and, on Tuesday morning, I pointed out 5 long trade ideas - right in the morning post – and we took the money and ran yesterday with 4 of 5 closed out as winners and the CMG April $620 calls at $8 closed yesterday at $17 – up 112% in two days.  This is why we can be comfortable going back to CASH!!! in a choppy market – we can always find fun things to trade – in any direction!