"Do not shoot till you see the whites of their eyes!"
It was General (Doctor) Warren, of Lexington, MA. He also died in the Battle of Bunker Hill. http://www.britishbattles.com/bunker-hill.htm
Well, their eyes are getting closer.
If you recall we sold Crude oil back in July at the high tick of $147.10, my forecast was for a low within 6 months at $75.00 target. Oil hit 84.15 today and the whites are getting closer.
This was one of my best calls of the year and probably one I will remember forever.
For people who have been short, they should look to cover. Enter day and night orders at $75.00.
As for the stock index futures markets, If you have followed along, we have been pushing shorts for over 2 months. I am finally seeing the whites of the SP futures eyes also. Here is how I think it should be played. Divide your buying power into 3 parts.
Buy now at current levels of 909 or better, Dec future 1/3 of your investment at market open tomorrow morning.
Buy 1/3 again at 850 Dec Future
Buy 1/3 again at 800 Dec Future
The volatility is that high that the spreads are that wide.
If we rally to 950 buy 1/3 Dec Futures on stop and delete lowest price order that is left.
I will keep this entry format open daily if needed on this blog.
When the fed gets the money worked out, the Libor rates will flatten and the market will have the biggest one day rally ever!
This will bring in more confidence for real estate and lower mortgage rates.
Happy trading!
view my new homes for sale
Good post ! I like the way you think !!!! It is a tricky market - Im glad most of our assets are in real estate !
Hi Christopher ande Stephanie:
I think all we need is credit spread to contract and real estate will go!
For those of you following, the market opened at 870.75 therefore we bought one unit there.
it it below 850.00 so you would have bought a second unit at $850.00
Now open order for 800 one unit to buy or buy another at 950 stop.
Oil hit 78.55 close to our long term cover of $75
Good Luck
Richard
Richard it is the one bright spot in an otherwise abysmal week. I think we will see a big rally at some point as well.