Good afternoon,
For those of you who subscribe to our real-time service, you saw a good example yesterday of why you don't SHORT a market when it's in full-blown rally mode. Yesterday I wrote here that 13450 seemed to be the place where we'd look to SHORT the SEP DOW futures contract but, when the market hit that level yesterday, it was clear that the market had built some momentum and looked like it wanted to press higher. And it did. We SOLD 13500 instead and that trade turned out to be a thing of beauty. We covered at 13300 today for 200 points of pure profit. This may have been a mistake as we move closer to the jobs report on Friday. The market looked like it was going to stage a brief intraday rally but nothing much became of it. So, with the DOW having just made a new low for the day, this could turn out to be a good example of a terrific entry on a trade followed by a premature exit. All we can do now is sit here and see if the market shows any sign of a rally. If that doesnt' occur, we'll have to just get SHORT again. Stay tuned.
Dale F. Doelling
President and Chief Market Technician
Trends In Commodities
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