Market Update 12/31/09

The SP-500 actually had some movement and range on the last day of the year. The last 45 minutes saw a sell off (on very low volume) straight down to the 1114.81 low. With the 1115.10 close its time to execute the next phase of the Short SP-500 index trade discussed in the last few posts.

1. With the pullback there are no more scale-in levels.(Now have 50% of a full position)

2. The Stop will now be 3.34 Points above the 1130.38 Pivot H (=SPX 1133.72 Stop)

3. If we trade below Fridays 1114.81 Low I will bring the Stop down to 1128.65 (1 point above Fridays sell-off High)

4. If SPX trades below 1114.10 ( The previously posted first target.) I will close half the position and continue to trail. I will post levels as they develop.

I now have a very small risk with an opportunity to profit is the index actually has a a normal 3-6% pull back. If we can hit the first target the risk goes to 0 with the decision becoming how much profit am I willing to give up in an effort to make more money. That would be a good problem to have.

As always Good Trading and Happy New Year.
KW