We didn't like yesterday's Beige Book from the Fed, which we went over live at 2pm during our Weekly Webinar and we made a few buck shorting the Russell but it then reversed overnight and I sent out a note to our Members (and on Twitter) this morning saying:
Flatlining, more or less in Europe after Asia was up 1% and our futures are flatter than flat and even oil is flat at $34.73 and /NKD skimming along at 16,900 so we'll just have to see what happens today but I stand by my interpretation of the BBook (bad) so, if we slip below these levels, we can short the laggards (4th or 5th to cross below with tight stops if any go back over the line):
Dow (/YM) 16,850, S&P (/ES) 1,980, Nasdaq (/NQ) 4,325, Russell (/TF) 1,065 and Nikkei (/NKD) 16,900
All are just over the line so 3 going under signals bear and then either of the 2 that haven't fallen are fair game. The same logic can be used to go bullish but I've seen nothing so far to make me lean that way – including the Dollar back to 98.15, down about 0.5% and not helping much. Oil is still a short below $35 (now $34.70 on /CL) and /NG testing $1.65 again means I like /NGK6 long again at $1.78 (as long as $1.65 holds on /NG).
No change so far so, if you are a Report Member or above and getting this daily pre-market Email (8:35),…