Good Morning Traders and Investors,
Futures were down about a 1/2 percent from yesterday's close, but alas, we opened pretty much flat and without any data ahead of a shortened week, the trading looks lackluster at best.
As I mentioned yesterday in "The Holiday Setup", bearish to neutral going into the holidays with tight stops, using the $SPX highs at $1120 as an exit strategy. This also provides the opportunity to "cover" your portfolio or at least "sleep at night" if you have covered calls and/or married puts.
I could sleep a lot better at night if there was snow in the forecast! I know it is early, but we only get 4 months of it, so let is snow December through March and I don't think anyone should complain.
Speaking of complaining, if you put $100.00 in your savings account one year ago and pulled it out exactly a year later, you would earn a quarter. A QUARTER! The dollar is weak, BUT it is showing signs of a bottom - I am not saying it has hit its lows, but from a traders perspective, look at it against the GPB - it has come back down below its breakout level. Against the EUR, it is sitting on a trendline connecting the lows of the upmove from MARCH. Same with the AUD and it already broke that trendline on the NZD. The USD/CAD broke that trendline and is now using it as SUPPORT! The CHF is on the trendline.
SO, does this signal a shorting opportunity in equities and a long opportunity in the dollar. If you are right, double gains, if wrong, small loss. That is what trading is all about!
Happy Trading and Be Environmentally Cool
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