Even though it was a bit premature, I'm glad I exited the core short for a small loss. Asking 1806 for a new short position, with first add coming at 1822, stop at 1840. Open order for now.
Awesome trading there....you sure taking a short is a good trade here evenif your research and your trade setup suggests a short is in order, given the fact that this is time for the Santa rally to start? Maybe in light of santa rally, its a good idea to slightly modify the trading plan and instead of taking a short at 1806 and another at 1822. Maybe get long now with a target of 1822??? Just saying...
I wonder if todays numbers will influence the fed to start tapering and stop pumping air into the Balloon?? and 1804 to 1807 will be the high??
broker research: Despite this weekâs reversal, the S&P 500 is up over 25% year-to-date and is on target to record its best performance in 12 years. Whilst many in the market are âcautiously longâ, with a feeling that this yearâs gains are almost too good to be true, in fact annual returns in excess of 20% are not as uncommon as some might think. In the 90 years its inception in 1923, the S&P 500 has risen by more than 20% on 29 occasions, a rate of almost 1 in every 3 years. In more recent times, however, 20%+ rallies have been slightly less frequent. The S&P 500 has rallied in excess of 20% on 12 occasions over the last 50 years, and only twice (2003 & 2009) over the last 15 years. With a view to 2014, it is interesting to examine how momentum from 20%+ annual moves in recent times has carried forward into the subsequent calendar year. The chart below shows the performance of the S&P 500 in the year after posting a gain in excess of 20% dating back to 1963. On the 12 occasions, the index added on average 12.5%, and only twice delivered a negative return. These negative returns in 1981 and 1990, took place as recessions took hold. The period 1995-1998 delivered 4 consecutive years of over 20%+ growth, with the run only ending when 1999 posted +19.5%. If history is to be a guide, therefore, a 26% upwards move is not something from which stocks must necessarily retreat. In fact, historically, the positive momentum created by a 20%+ up-move is more likely to be carried forward into 2014.
There's a possibility that they may never taper and the S&P will go up forever, perhaps all the way to the moon!
Yes and we can all be sitting on the moon with Santa Claus and all his reindeer eating cheese and caviar. Sorry I prefer reindeer meat myself!