One of the things we talked about two to three weeks back was the idea that there are times to range play trades and times to think that the dam is about to burst (up or down) and that we should keep some exposure in play and maybe make a bigger bet. I have been researching lately looking for clues to allow me to know the latter situation is in play. So far I have no solid indications that I can time these larger than life kind of moves, but anecdotally it appears we are near a larger move rather than a range trade. I'm thinking it will be to the downside given the action of late so I am keeping some short exposure on the table looking for that move. If we appear to actually begin to get that move, I'll look to try a momentum trade in that direction with more exposure.
Look at the 1592 area on the NDX and the 10575 area on the DJIA as key critical short term areas that could cause some cascade type selling if violated.
Look at the 1592 area on the NDX and the 10575 area on the DJIA as key critical short term areas that could cause some cascade type selling if violated.
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