Befriend the Trend!

Sept. 6th, 2007: Good morning traders!

Futures have been up most of the morning, slightly, but now trading a bit below fair value. There are a lot of SSS's numbers to digest this morning (WMT among them, which came in strong), and unemployment rolls out in a few minutes. Yesterday turned out to be a trend down day after showing some early headfakes. The indices traded precisely as we predicted (gap down, gap fill, rollover) but I still got whipped out of my hedge short position in the Q's for a minimal gain. Also made a mistake in jumping on CROX early only to get stopped out when some bad news hit the airwaves. Otherwise we would have been strongly green on the day (have a real nice winner in the MTT letter: SCUR) with our longs continuing to outperform the markets and our short finally hitting some profit. Can't beat seeing the Swing Trade Newsletter trades up on a day when the markets were down over 1%% How sweet is that??

Today I expect some minor chop chop early as the indices look for support, and then the beginnings of a recovery rally this afternoon into tomorrow. I don't expect that to get very far however. We should trade within a tight range until we hear from the FOMC later in the month.

Stocks to watch: (longs) GRMN, RIG; (shorts) HON, ICE, MICC, BEAV