Here we are again.
Once again the Fed failed to raise rates and the Dollar dropped, sending the indexes and commodities higher. Boeing (BA) was the entire story for the Dow (DIA), as their $20 gain was good for 170 of the 97 points the Dow gained. That’s right, without BA, the rest of the Dow components lost 73 points and the S&P ended up red (slightly) despite Boeing’s boost.
We had a live Webinar yesterday and we talked about the internal market weakeness and decided to stick with our index shorts from Tuesday morning’s Report, notably the Dow below the 21,650 line and the Russell below 1,445 – with tight stops over the line.
We’re also still shorting Oil (/CL) Futures below the $48.50 line as that too, seems overdone after it’s 15% run since Mid-June rom $42 to $48.50. Considering how much effort has been made to talk oil up – $48.50 is pretty pathetic, a strong indicator of general weakness. Also, we’re getting into that time of year when there’s already a tremendous overhang of fake, Fake, FAKE open contracts at the NYMEX from traders who have no intention of taking delivery. December already holds open orders for 342M barrels – that’s 20 times the amount that will actually be delivered!
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