Well this is fun!
We went over our 2,480 line yesterday morning on news of tax cuts coming out of DC (conveniently timed for the market open) but then the tweeter-in-chief took time off the golf course to say that North Korea will be met with “fire and fury, the likes of which this World has never seen before.” Keep in mind that’s a statement coming from the head of the only state that has ever actually used nuclear weapons on another country.
That took the S&P right back to 2,460 for a gain of $1,000 per contract per our call in the PSW Morning Report, which you could have delivered to you every morning for just $3 a day. That call paid for 3 years’ worth of subscriptions so, you’re welcome.
Our other shorting lines were good for $250 on Dow Futures (/YM), $1,400 on the Nasdaq Futures (/NQ) and a fat $1,500 per contract gain on the Russell Futures (/TF), which took a 30-point plunge from our 1,430 goal – not bad for a morning’s work, right?
This morning, we’re letting the indexes tell us what to do by watching our levels. My not to our Members earlier this morning was:
/TF 1,400 is a good place to play for a long bounce if we get our usual pre-market run-up. We’re lined up right with /YM 22,000 (also a good long with tight stops below) and 2,460 on /ES and 5,880 on /NQ and if ANY of those lines fail then it’s time to use them as bearish marks and short the laggard.
So we are waiting and seeing but European stocks are down more than 1% so it’s looking like the advantage is going to the shorts, especially since the unrepentant Trump JUST re-tweeted the following: