Folks, as I have been pointing out for a number of weeks the markets have been looking tired and any bit of negative news could wreck havoc with the bulls…well that is what happened today when ADP released their employment data this morning…their report indicated US companies added only 38,000 jobs last month which was far below what most analysts had expected; -175,000…I also mentioned that I went to mostly cash except for a few positions our User Group Members have been following…so far our IBM credit spread is working out very nice as is the VECO credit spread…the markets hit right up against our resistance levels I pointed out in the S&P chart this weekend and then suffered today’s pullback..

Keep in mind that even with the large losses the markets suffered today we’re still prone to more volatility this week since we’re coming off a long holiday weekend as I mentioned in a prior update…I indicated that you should all expect volatility to rise so consider purchasing hedges for your Long positions if you are holding them….I hope most of you listened to that update…because today put options just became a little bit more expensive.

As a quick reminder, we have our June monthly session coming up on the 18th and I look forward to a really great session…come prepared to discuss new trading opportunities plus a review of our results so far…for those of you that are not Members then I invite you to come on over and join up…during market conditions I feel we are going to experience over the summer months you need to be prepared…

Remember, stay nimble as the markets, even with today’s severe beat down, is still trading in a narrow range as I pointed out in this weekend’s update…

Trade Smart — Not Often

 

hpb

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