Morning folks. Futures taking a slight dip as another disappointing economic report called into question the pace of the recovery. Durable goods orders fell 1% instead of a 1% gain….decent size swing there. Ahead of the opening bell, Dow Jones industrial average futures fell 32, or 0.3 percent, to 10,462. Standard & Poor’s 500 index futures fell 3.20, or 0.3 percent, to 1,107.70, while Nasdaq 100 index futures fell 3.50, or 0.2 percent, to 1,883.00.
Europe is a bit weak as is OIL ($uso) down .5%. Nat Gas remains strong today up 1%.
Keep an eye on $supx $simg $s all gapping up nicely after good earnings beats. A stock thats near breakout levels that beats earnings can often start a run that goes for months. especially if its in the 1st stage of a recovery/growth syle. 1 earnings beat can be followed by many if its a growth stock.
I expect some consolidation in the coming days or a light pullback. So we need to stay light. Im mostly all cash after taking profits in a host of things yesterday.
Remember not everyday is a trading day. To start adding huge long positions when the market gets overbought and shaky is a low probability high risk trade. Train your minds to look for the right opportunities and let them come to you. We are still in bear market trading environment right now which means smaller positions an be quicker to take profits. As always even I am not adding long swing positions very heavily I will be looking for daytrades.