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Another volatile day…

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Thanksgiving week is over, one of the better rallies these markets have had in a while. Even Friday was a strong day, as news started to come out of decent retail sales on Black Friday, despite the sad events in India. Revenues year over year was up 3%, but the question will remain until these companies report at what margins they were able to move the product. Over the weekend the story weakened a bit as sales didn’t carry forward into the weekend. So Monday came along and an expected correction was expected, maybe even a healthy one, so when the market was down 400 pts nobody was really surprised, little did we know that the markets with the VIX still historical levels was ready to give up more. We ended up closing on the lows of the day down some 700 pts and the surprising thing was that it never felt like panic selling.

Today’s activity was much more volatile. We easily had three large moves in the market, yet as it turned out we never really picked a direction to get comfortable with. For those that traded today patients was key, for instance MO was a none event for most of the morning – as it chopped around a range – but once that range was broken a nice short opportunity presented itself. These are the high probability set ups we need to be ready to jump all over. We set alarms for breakdown or breakouts and we have the mentoring room that has all of our eyes looking for opportunities.

We still have all the uncertainty revolving the markets in terms of the unknown fundamentals we are going through. The auto companies CEOs are driving to Washington to present their “plan” for our money, I would guess that they will get the money this time around, but we will have to see what sort of comments come from this congress.

Some days are easier than others to trade, but if we are making a career out of this you need to keep your powder dry for a sweet spot either during that day or the next day.

Nothing but excitement in these markets.


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