CPI could be around the expected range. If so the markets will most likey stay within a trading range of 12275-12350 If its well below estimate expect a 1%+ move to the upside. Anything above a .2 and expect a selloff. By the way I just went long SMH. The market should certainly fall now.
Romik, I respect all kinds of trading strategies. On this peculiar event on Friday morning, I would have a different approach, based on the open. If the open is a significant gap up or down, I will fade it. Probably with more powder (capital) if it is down because I still believe there is a big incentive to keep this market with a nice run-up for 2006.
I think Friday will be a tough day to trade even if its a large gap down. If the CPI comes in at .4+ which I highlllly doubt, I wouldnt go long anything Friday. Anything .2 or less and it gaps down a turnaround is definetly in the cards.
Fair enough. I am preparing a battle plan based on the two variables core CPI actual vs estimate and gap up / down. It should tell us how the market makers "play" the numbers. I would fade only if the open gap (or lack of) seems extreme. And by the way I will go to the number net long. It is just a matter of how long I will go before thursday night. Long individual stocks, short ETFs , as usual.
What etfs do you short, I keep QID in my portfolio to play the shortside of the market. I tend to trade more etfs than I do individual stocks.
The usual big "suspects": SMH (relative weakness this year) - QQQQ - SPY - DIA , in order. But QID seems interesting with a x2 leverage. To be investigated. Is the volume OK ?
Midnight Rally tonight, Santa and his little workers will be busy, we will wake up to positive futures tomorrow
either way.. congrats once again to all those who play the no risk buy the dip for free money system $$
Specialist Scrooge: [Haughty tone] "The Poor?" [traders] "What of the Poor?" "Are there no Prisons?" "Are there no Workhouses?" "Is there no Bright?..."
Oh boy here comes santa clause, I bet the media will spin something good out of the two US officals over in China Paulson and Bernake.