Futures Turn Negative After Jobless Claims/ POT Trade

9:15am (EST) The futures had been up this morning but have lost steam after a worse-than-expected weekly jobs report. The number of US workers filing new claims for jobless benefits rose 15,000 last week to 576,000. Wall Street had forecast new claims of 550,000 from the previously reported 558,000. As a result, Dow futures are lower by 11 to 9265, Nasdaq futures are down 3 to 1596 while the S&P 500 futures are up 1 to 998. China’s Shanghai index rebounded 4.5% which seemed to be the driving force behind the earlier momentum. Elsewhere on the economic front, July’s leading economic indicators and the August Philly Fed manufacturing report are also due out today. As far as our open trades, I’ll give an update at 1pm. I am watching the Potash (POT, $95.18) September 110 calls (PYPIB, $1.20, up $95.18) this morning. I’ve talked about this stock numerous times in the past but it has been consolidating at these levels for awhile. If the stock opens LOWER and the call options dip below a $1.00…pull the trigger and pick some up. If the stock opens HIGHER, wait 15 minutes and try not to pay more than $1.35-$1.40 for them. Do not pay more than $1.40 to start new positions. Rick@MomentumOptionsTrading.com]]>

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