Sunday, October 08, 2006
Too Close For Comfort
We are very close to our stop loss positions. The markets have been moving relentlessly upwards. In my view this is because investors are scared they are missing out on the next bull market. Whatever the reasons we are looking at our first stop this year unless the markets head significantly south this week.
The SPX and RUT both finished down over 3 points to finish 1349.58 and 739.81 respectively. This was due to weak jobs data. Nonfarm payrolls rose by just 51,000 in September, well below expectations for a reading near 125,000. However, August's figure was revised up by 60,000, leaving the net result near estimates.
Lets hope there is some down movement next week. Key data out this week will be in the form of speeches from the Fed and the release of the Fed minutes from their meeting three weeks ago (an eternity lets be honest).
Its going to be an exciting week. Please don't despair if things don't go our way this week. We've had 9 winning months this year. Any professional investors takes losses. That is the cost of us doing business.
And please remember. Just don't gamble with these trades. If the market ends in the red zone and you still have an open position on then you will be taking a big loss. We are not gamblers. We are traders. Do the right thing and shut the position in accordance with your plan.
Until next time.
The SPX and RUT both finished down over 3 points to finish 1349.58 and 739.81 respectively. This was due to weak jobs data. Nonfarm payrolls rose by just 51,000 in September, well below expectations for a reading near 125,000. However, August's figure was revised up by 60,000, leaving the net result near estimates.
Lets hope there is some down movement next week. Key data out this week will be in the form of speeches from the Fed and the release of the Fed minutes from their meeting three weeks ago (an eternity lets be honest).
Its going to be an exciting week. Please don't despair if things don't go our way this week. We've had 9 winning months this year. Any professional investors takes losses. That is the cost of us doing business.
And please remember. Just don't gamble with these trades. If the market ends in the red zone and you still have an open position on then you will be taking a big loss. We are not gamblers. We are traders. Do the right thing and shut the position in accordance with your plan.
Until next time.
# posted by Paul @ 4:16 PM 
